14.

Requlred: a. Prepare all consolidation entrles needed at December 31,208, to complete a three-part consolidation worksheet. (If no entry Is requlred for a transaction/event, select "No journal entry requlred" In the first account fleld.) A Record the basic consolidation entry. On January 1, 20X5, Pond Corporation purchased 75 percent of Skate Company's stock at underlying book value. At that date, the falr value of the noncontrolling interest was equal to 25 percent of Skate's book value. The balance sheets for Pond and Skate at January 1,208, and December 31,208, and Income statements for 208 were reported as follows: Additional Information 1. Pond sold a bullding to Skate for $65,000 on December 31,207. Pond had purchased the bullding for $125,000 and was depreclating it on a straight-Ine basis over 25 years. At the time of sale, Pond reported accumulated depreclation of $75,000 and a remaining life of 10 years. 2. On July 1, 20X6, Skate sold land that it had purchased for $22,000 to Pond for $35,000. Pond is planning to bulld a new warehouse on the property prior to the end of 209. 3. Skate Issued $100,000 par value, 10 -year bonds with a coupon rate of 10 percent on January 1,205, at $95,000. On December 31 , 207, Pond purchased $40,000 par value of Skate's bonds for $42,800. Interest payments are made on July 1 and January 1 . 4. Pond and Skate pald dividends of $30,000 and $10,000, respectively, in 208