Stable Home Builders Inc. purchased 80 percent of the stock of Acme Concrete Works on January \(1,20 \times 3\), for \(\$ 360,000\). The balance sheet of Acme Concrete contained the following amounts at the time of the combination:

During each of the next three years, Acme Concrete reported net income of \(\$ 50,000\) and paid dividends of \(\$ 20,000\). On January 1, 20X5, Stable Home Builders sold 4,000 of the \(\$ 10\) par value shares of Acme for \(\$ 120,000\) in cash. Stable Home Builders used the basic equity method in accounting for its ownership of Acme Concrete.
\section*{Required}

a. Compute the balance in the investment account reported by Stable Home Builders on January \(1,20 \times 5\), before its sale of shares.

b. Prepare the entry recorded by Stable Home Builders when it sold the Acme Concrete shares.

c. Prepare the appropriate elimination entries to complete a full consolidation workpaper for 20X5.

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Cash $ 30.000 Accounts Payable $ 50,000 Accounts Receivable 65.000 Bonds Payable 300,000 Inventory 15.000 Common Stock 200.000 Construction Work in Progress 470,000 Retained Earnings 250.000 Other Assets (net) 220.000 Total Assets $800.000 Total Liabilities and Equities $800,000