Azure Enterprises acquired 80 percent of Brown Corporations voting common stock on January 1, 20X3, for $352,000. At that date, the fair value of the noncontrolling interest of Brown Corporation was $88,000. Immediately after Azure acquired its ownership, Brown purchased 60 percent of Coral Companys stock for $138,000. The fair value of the noncontrolling interest of Coral Company was $92,000 at that date. During 20X3, Azure reported operating income of $210,000 and paid dividends of $110,000. Brown reported operating income of $170,000 and paid dividends of $65,000. Coral reported net income of $40,000 and paid dividends of $15,000. At January 1, 20X3, the stockholders equity sections of the balance sheets of the companies were as follows:

	Azure Enterprises	Brown Corporation	Coral Company
Common Stock	$ 260,000	$ 230,000	$ 120,000
Additional Paid-In Capital	150,000	60,000	80,000
Retained Earnings	390,000	150,000	30,000
Total Stockholders Equity	$ 800,000	$ 440,000	$ 230,000

Required:

1. Prepare the journal entries recorded by Brown for its investment in Coral during 20X3.
2. Prepare the journal entries recorded by Azure for its investment in Brown during 20X3.
3. Prepare the consolidation entries related to Browns investment in Coral and Azures investment in Brown that are needed in preparing consolidated financial statements for Azure and its subsidiaries at December 31, 20X3.