The trial balance data presented in Problem 6-35 can be converted to reflect use of the cost method by inserting the following amounts in place of those presented for Prime Company:

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a. Prepare the journal entries that would have been recorded on the books of Prime Company during \(20 \times 7\) under the cost method.

b. Prepare all eliminating entries needed to complete a consolidation workpaper as of December 31, 20X7, assuming Prime has used the cost method.

c. Complete a three-part consolidation workpaper as of December 31, \(20 \times 7\).

Transcribed Image Text:

Investment in Lane Company Stock $160,000 Retained Earnings 348,000 Income from Subsidiary Dividend Income -0- 28.000