Brax bought 80% of the Fox Company several years ago when fair value equaled book value. On January 1, 2017, Fox has $100,000 of 8% bonds that were issued at par value and with five years to maturity. Interest is paid annually on December 31. Both Brax and Fox would use the straight line method to amortize any premium or discount incurred on the issuance or purchase of bonds. On January 1, 2018, Brax purchased all of Fox's bonds for $96,000.

Required: a. Prepare the 2018 wage entries for Brax and Fox in their respective accounting records. b. Prepare the worksheet entries required for consolidation.