Refer to the information given in problems 12-23 and 12-24 for Alamo and its subsidiary, Western Ranching. Assume that the Australian dollar (A\$) is the functional currency and that Alamo uses the basic equity method for accounting for its investment in Western Ranching Company. A December 31, 20X3, trial balance for Alamo Inc. is presented below. Use this trial balance for completing this problem.

Required

a. Prepare a set of eliminating entries, in general journal form, for the entries required to prepare a comprehensive (including other comprehensive income) consolidation workpaper as of December 31, 20X3.

b. Prepare a comprehensive consolidation workpaper as of December 31, 20X3.

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Cash Item Debit Credit $ 38,000 Accounts Receivable (net) 140,000 Receivable from Western Ranching 6.480 Inventory 128.000 Plant and Equipment 500,000 Investment in Western Ranching 152.064 Cost of Goods Sold 600,000 Depreciation Expense 28,000 Operating Expenses 204.000 Interest Expense Dividends Declared 2,000 50,000 Translation Adjustment Accounts Payable Interest Payable 22,528 Accumulated Depreciation $ 90.000 Common Stock Retained Earnings, January 1, 20X3 Sales Income from Subsidiary Total 60,000 2,000 500,000 179.656 1,000,000 39,416 $1,871,072 $1,871,072