Purple Corporation owns 80 percent of Corn Corporation's common stock. It purchased the shares on January 1, 20X1, for \(\$ 520,000\). At the date of acquisition, Corn Corporation reported common stock outstanding of \(\$ 400,000\) and retained earnings of \(\$ 200,000\). The excess of purchase price over Purple's proportionate share of the book value of Corn's net assets is assigned to a trademark with a life of five years. Each year since acquisition, Corn has reported income from operations of \(\$ 60,000\) and paid dividends of \(\$ 25,000\).

Corn Corporation purchased 70 percent ownership of Bark Company on January 1, 20X3, for \(\$ 405,000\). At January 1, 20X3, Bark Company reported common stock outstanding of \(\$ 250,000\) and retained earnings of \(\$ 300,000\). Bark Company reported net income of \(\$ 30,000\) and paid dividends of \(\$ 20,000\) in \(20 \mathrm{X} 3\). The purchase differential is assigned to buildings and equipment with an economic life of 10 years at the date of acquisition.

\section*{Required}

a. Prepare the journal entries recorded by Corn Corporation for its investment in Bark Company during \(20 \times 3\).

\(b\). Prepare the journal entries recorded by Purple Corporation for its investment in Corn Corporation during 20X3.

c. Prepare the eliminating entries related to Corn's investment in Bark Company and Purple's investment in Corn that are needed in preparing consolidated financial statements for Purple Corporation and its subsidiaries at December 31, 20X3.