Can somebody help me?
Prince Corporation holds 75 percent of the common stock of Sword Distributors Inc., purchased on December 31, mm, for $2,160,000. At the date of acquisition, Sword reported common stock with a par value of$920,000, additional paid-in capital of $1,270,000, and retained earnings of $530,000. The fair value of the noncorltrolling interest at acquisition was $720,000. The differential at acquisition was attributable to the following items: Inventory {sold in 203(2) 5 40,000 Land 56,000 Goodwill 64,000 Total Differential $160,000 During 20x2, Prince sold a plot of land that it had purchased several years before to Sword at a gain of $22,400; Sword continues to hold the land. In 20KB, Prince and Sword entered into a veyear contract under which Prince provides management consulting services to Sword on a continuing basis; Sword pays Prince a fixed fee of $88,000 per year for these services. At December 31, 2OX8, Sword owed Prince $22,000 as the final 20X8 quarterly payment under the contract. On January 2, 20KB, Prince paid $260,000 to Sword to purchase equipment that Sword was then carrying at $300,000. Sword had purchased that equipment on December 27, 20x2, for $450,000. The equipment is expected to have a total 15year life and no salvage value. The amount of the differential assigned to goodwill has not been impaired. At December 31, 20KB, trial balances for Prince and Sword appeared as follows: Prince Corporation Sword Distributors Inc. Iten Debit Credit Debit Credit Cash 5 59,700 5 47,000 Current Receivables 113,800 101,400 Inventory 290,000 230,900 Investment in Sword Distributors 2,836,600 Land 411,390 1,216,000 Buildings 8 Equipment 2,480,000 3,180,000 Cost of Goods Sold 2,125,000 521,000 Depreciation 8 Amortization 196,000 70,000 Other Expenses 1,380,000 211,000 Other Expenses 1,386,666 211,666 Dividends Declared 42,666 12,666 Accumulated Depreciation $1,699,666 $ 463,666 Current Pay-ables 91,266 523,366 Bonds Payable 865,666 168,666 Common Stock 81,666 926,666 Additional Paid-in Capital 1,255,666 1,276,666 Retained Earnings, Januaryr 1 1,464,366 1,326,666 Sales 4, 93?, 666 994, 666 Other Income or Loss 95,666 34,666 Income from Sword Distributors 145,566 Total $6,984,166 $6,984,166 $5,523,399 $5,523,309 As of December 31, 20KB, Sword had declared out not yet paid its fourthquarter dividend of$5,000_ Both companies use straightline depreciation and amortization. Prince uses the fully adjusted equity method to account for its investment in Sword. Required: a. Compute the amount of the differential as of January 1, 2OX8- 9 Answer is complete and correct. $ 120 I] b. Verify the balance in Prince's Investment in Sword Distributors account as of December 31, 2OX8. 0 Answer is complete but not entirely correct. $ 2.831000 9 c. Present all consolidation entries that would appear in a threepart consolidation worksheet as of December 31, 20X8. {If no entry is required for a transactionlevent. select \"No journal entry required\" in the rst account eld. Round your answers to nearest whole dollar amount.) 9 Answer is not complete. Income from sword Dist. 0 145,500 9 _
