Palmer Corporation purchased 70 percent of the ownership of Krown Corporation on January 1, 20X8, for \(\$ 140,000\). At that date Krown reported capital stock outstanding of \(\$ 120,000\) and retained earnings of \(\$ 80,000\). During 20X8, Krown reported net income of \(\$ 30,000\), comprehensive income of \(\$ 36,000\), and paid dividends of \(\$ 25,000\).

\section*{Required}

a. Present all entries that would have been recorded by Palmer Corporation in accounting for its investment in Krown Corporation during 20X8.

b. Present all eliminating entries needed at December 31, 20X8, to prepare a complete set of consolidated financial statements for Palmer Corporation and its subsidiary.

5.24 Palmer Corporation purchased 70 percent of the ownership of Krown Corporation on January 1, 20X8, for \(\$ 140,000\). At that date Krown reported capital stock outstanding of \(\$ 120,000\) and retained earnings of \(\$ 80,000\). During 20X8, Krown reported net income of \(\$ 30,000\), comprehensive income of \(\$ 36,000\), and paid dividends of \(\$ 25,000\).
\section*{Required}

a. Present all entries that would have been recorded by Palmer Corporation in accounting for its investment in Krown Corporation during 20X8.

b. Present all eliminating entries needed at December 31, 20X8, to prepare a complete set of consolidated financial statements for Palmer Corporation and its subsidiary.