Proud Corporation acquired 90 percent of the voting shares of Allied Products Company in a business combination recorded as a pooling of interests on January 1, 20X2. Proud Corporation uses the equity method in accounting for its ownership of Allied Products. On December 31, 20X3, the trial balances of the two companies are as follows:

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a. Give all workpaper eliminating entries required as of December \(31,20 \times 3\), to prepare consolidated financial statements.

b. Prepare and complete a three-part consolidation workpaper.

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Proud Corporation Allied Products Company Debit Current Assets $159,000 Depreciable Assets 500.000 Credit Debit $105.000 300.000 Credit Investment in Allied Products Company Stock 153.000 Operating Expenses 105.000 75.000 Depreciation Expense 25.000 15,000 Dividends Declared 40.000 10,000 Accumulated Depreciation $175.000 $ 75,000 Current Liabilities 50,000 40.000 Long-Term Debt 100.000 120,000 Common Stock 200.000 100.000 Retained Earnings 230.000 50.000 Sales 200,000 120.000 Income from Subsidiary 27.000 Totals $982.000 $982.000 $505.000 $505.000