- Complete the specific consolidation entries related to the Additional Information items #2 and #3 ONLY. One is a land transfer, and the other is a depreciable asset transfer. (not the whole consolidation)

Prime Company holds 80 percent of Suspect Company's stock, acquired on January 1, 20X2, for $160,000. On the acquisition date, the fair value of the noncontrolling interest was $40,000. Suspect reported retained earnings of S50,000 and had $100,000 of common stock outstanding. Prime uses the fully adjusted equity method in accounting for its investment in Suspect Advanced StudyGuide com Trial balance data for the two companies on December 31, 20X6, are as follows Prime Company Suspect Company Debit S 113,000 260.000 S0.000 500,000 191,600 140,000 25,000 15,000 30,000 Debit S 35.000 90.000 0.000 150,000 Item Cash & Accounts Receivable Inventory Land Buildings &Equipment Investment in Suspect Company Stock Cost of Goods Sold Depreciation & Amortization Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Gain on Sale of Equipment Income from Suspect Total Credit Credit 60.000 15,000 5,000 5,000 S 205,000 60.000 200.000 300.000 322.000 240.000 20,000 7.600 $1,354.600 S 45,000 20.000 50.000 100.000 95.000 130.000 S1,354.600 $440.000 $440,000 Additional Information Page 366 I. At the date of combination, the book values and fair values of all separately identifiable assets and liabilities of Suspect were the same. At December 31, 20X6 the management of Prime reviewed the amount attributed to goodwill as a result of its purchase of Suspect stock and concluded an impairment loss of $18,000 should be recognized in 20X6 and shared proportionately between the controlling and noncontrolling shareholders. 2. On January 1,20X5, Suspect sold land that had cost $8,000 to Prime for $18.000. On January 1, 20X6, Prime sold to Suspect equipment that it had purchased for $75,000 on January 1, 20X1. The equipment has a total economic life of 15 years and was sold to Suspect for $70,000. Both companies use straight-line depreciation. 4. There was $7,000 of intercompany receivables and payables on December 31, 20X6