Charlie Company acquired 75% of Dennis Company's outstanding common stock for $96,000 on January 1, 2016. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Dennis' net assets at acquisition was $100,000. The book values and fair values of Dennis' assets and liabilities were equal, except for buildings and equipment which was $20,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Charlie's management concluded on December 31, 2016, that goodwill was impaired and the carrying value was $2,500.

	Trial Balances at December 31, 2016
	Charlie Company			Dennis Company
Cash	$ 47,500			$ 21,000
Accounts Receivable	70,000			12,000
Inventory	90,000			25,000
Investment in Dennis Stock	96,375			-
Land	30,000			15,000
Buildings and Equipment	350,000			150,000
Accumulated Depreciation		$ 145,000			$ 40,000
Accounts Payable		45,000			16,000
Wages Payable		17,000			9,000
Bonds Payable		150,000			50,000
Common Stock		200,000			60,000
Retained Earnings		102,000			40,000
Dividends Declared	30,000			16,000
Sales		260,000			180,000
Income from Dennis		12,375			-
Cost of Goods Sold	125,000			110,000
Wage Expense	42,000			27,000
Depreciation Expense	25,000			10,000
Interest Expense	12,000			4,000
S&A Expense	13,500			5,000
Total	$ 931,375	$ 931,375		$ 395,000	$ 395,000

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.