Power Corporation acquired 75 percent of the ownership of Best Company of January 1, 20X8, for \(\$ 96,000\). At that date, the fair value of Best's buildings and equipment was \(\$ 20,000\) greater than book value. Buildings and equipment are depreciated on a 10 -year basis. Although goodwill is not amortized, the management of Power Corporation concluded at December 31, 20X8, that goodwill involved in its purchase of Best Company shares had been impaired and the correct carrying value was \(\$ 2.500\). No additional impairment occurred in 20X9.

Trial balance data for Power Corporation and Best Company on December 31, 20X9, are as follows:

\section*{Required}

a. Give all eliminating entries needed to prepare a three-part consolidation workpaper as of December 31, 20X9.

b. Prepare a three-part consolidation workpaper for 20X9 in good form.

c. Prepare a consolidated balance sheet, income statement, and retained earnings statement for 20X9.

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Power Corporation Debit Best Company Item Debit Credit Credit Cash $ 68,500 $ 32,000 Accounts Receivable Inventory 85.000 14,000 97,000 24,000 Land 50,000 25,000 Buildings and Equipment 350,000 150,000 Investment in Best Co. Stock 111,000 Cost of Goods Sold 145,000 114,000 Wage Expense 35,000 20,000 Depreciation Expense 25.000 10,000 Interest Expense 12,000 4,000 Other Expenses 23,000 16,000 Dividends Declared 30,000 20.000 Accumulated Depreciation $ 170.000 $ 50.000 Accounts Payable 51.000 15,000 Wages Payable 14.000 6,000 Notes Payable 150.000 50,000 Common Stock 200.000 60.000 Retained Earnings 131,000 48.000 Sales 290.000 200.000 Income from Subsidiary 25.500 $1,031.500 $1,031.500 $429.000 $429,000