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Bradford Company acquired 90% of Chadwick Company's outstanding common stock for $270,000 on January 1, 2016, when the book value of Chadwick's net assets was

Bradford Company acquired 90% of Chadwick Company's outstanding common stock for $270,000 on January 1, 2016, when the book value of Chadwick's net assets was equal to $300,000. Bradford uses the equity method to account for investments. Trial balance data for Nichols and Bosely as of December 31, 2016 are as follows:

Bradford Company Chadwick Company
Cash $ 158,000 $ 80,000
Accounts Receivable 165,000 65,000
Inventory 200,000 75,000
Investment in Bosely Stock 319,500 -
Land 200,000 100,000
Buildings and Equipment 700,000 200,000
Accumulated Depreciation $ 450,000 $ 20,000
Accounts Payable 75,000 60,000
Bonds Payable 200,000 85,000
Common Stock 500,000 200,000
Retained Earnings 225,000 100,000
Dividends Declared 100,000 20,000
Sales 800,000 250,000
Income from Bosely 67,500 -
Cost of Goods Sold 200,000 125,000
Depreciation Expense 50,000 10,000
S&A Expense 225,000 40,000
Total $ 2,317,500 $ 2,317,500 $ 715,000 $ 715,000

a. Prepare all equity method entries for 2016.

b. Prepare any necessary consolidation entries.

c. Prepare a consolidated income statement, consolidated statement of retained earnings, and a consolidated balance sheet.

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