Refer to the information given in problems 12-23 and 12-27 for Alamo and its subsidiary, Western Ranching. Assume that the U.S. dollar 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 remeasured trial balance for completing this problem.

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a. Prepare a set of eliminating entries, in general journal form, for the entries required to prepare a three-part consolidation workpaper as of December 31, 20X3.

b. Prepare a three-part consolidation workpaper as of December 31, 20X3.

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Cash Item Accounts Receivable (net) Receivable from Western Ranching Debit $ 38,000 140.000 6.480 Credit Inventory 128,000 Plant and Equipment 500.000 Investment in Western Ranching 178.544 Cost of Goods Sold 600.000 Depreciation Expense 28.000 Operating Expenses 204.000 Dividends Declared Interest Expense Accumulated Depreciation 2.000 50,000 Accounts Payable $ 90.000 60.000 Interest Payable 2.000 500,000 Common Stock Retained Earnings, January 1, 20X3 Sales Income from Subsidiary Total 179,656 1,000,000 43.368 $1,875,024 $1,875.024