A. Purse Corporation acquired 70 percent of Scarf Corporation's ownership on January 1, 20X8, for $148,400. At that date, Scarf reported capital stock outstanding of $126,000 and retained earnings of $86,000, and the fair value of the noncontrolling interest was equal to 30 percent of the book value of Scarf. During 20X8, Scarf reported net income of $33,600 and comprehensive income of $39,600 and paid dividends of $28,600.

Required: a. Present all equity-method entries that Purse would have recorded in accounting for its investment in Scarf during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the initial investment in scarf corp.

2. Record Purse Corps 70% sgare of scarf corps 20X8 income

3. Record Purse Corps 70% sgare of scarf corps 20X8 dividend

4. Record Purse corps proportionate share of OCI from Scarf corp

B. Present all consolidation entries needed at December 31, 20X8, to prepare a complete set of consolidated financial statements for Purse Corporation and its subsidiary. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the basic cosolidation entry

2. Record the other comprehensive income entry