Planet Corporation held 80 percent of Sun Corporation’s outstanding common shares on December 31, 20X2, which it had acquired at underlying book value. When the shares were acquired, the fair value of the noncontrolling interest was equal to 20 percent of Sun’s book value. Balance sheets for the two companies on that date follow:

On January 1, 20X3, Sun issued 4,000 additional shares of its $10 par value common stock to Nonaffiliated Corporation for $45 per share. Planet recorded the change in the book value of its Sun shares as an adjustment to its investment in Sun and an adjustment to its additional paid-in capital.

Required

a. Give the worksheet consolidation entry needed in preparing a consolidated balance sheet as of January 1, 20X3, immediately following the sale of shares by Sun.

b. Prepare a consolidated balance sheet worksheet as of the close of business on January 1, 20X3.

c. Prepare a consolidated balance sheet as of the close of business on January 1, 20X3.

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Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Sun Corporation Total Assets PLANET CORPORATION Balance Sheet December 31, 20X2 $50,000 90,000 180,000 700,000 (200,000) 480,000 $1,300,000 Accounts Payable Mortgages Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities $ 70,000 250,000 300,000 180,000 500,000 $1,300,000