Complete the specific consolidation entries related to the Additional Information items #2 and #3 ONLY (not the whole consolidation)

On January 1, 20X5, Pond Corporation acquired S0 percent of Skate Company's stock by issuing common stock with a fair value of S1S0,000. At that date, Skate reported net assets of S150,000. The fair value of the noncontrolling interest was $45.000. Assume Pond uses the fully adjusted equity method. The balance sheets for Pond and Skate at January 1. 20XS, and December 31, 20XS, and income statements for 20XS were reported as follows 20X8 Balance Sheet Data Pond Corporation Skate Company January1 S 40,400 120,000 40.000 100,000 50,000 400,000 (150,000) 185.600 135.000 $921,000 60,000 40.000 300,000 December 31 January1 December 31 S 47,000 65.000 0,000 50,000 22,000 240.000 (94,000) Cash Accounts Receivable Interest & Other Receivables Inventory Land Buildings &Equipment Accumulated Depreciation Investment in Skate Com Investment in Tin Co. Bonds Total Assets Accounts Payable Interest & Other Payables Bonds Payable Bond Discount Common Stock Additional Paid-in Capital Retained Earnings Total Liabilities & Equities S 68,400 130,000 45,000 140,000 50,000 S 10,000 60,000 8,000 50,000 22,000 240.000 (70,000) 400.00 (185,000) 200.100 134.000 $982.500 S 65.000 45.000 300,000 pany Stock $320,000 S 16,500 7.000 100,000 (3.500) 30,000 20,000 150,000 S320,000 $340.000 S 11,000 12,000 100,000 (3,000) 30,000 20,000 170,000 S340.000 150,000 55,000 216,000 $921.000 150,000 155,000 267.500 $982.500 20X8 Income Statement Data Pond Corporation Skate Company $450,000 22,500 14.900 $487.400 Sales Income from Skate Company Interest Income Total Revenue Cost of Goods Sold Other Operating Expenses Depreciation Expense Interest Expense Miscellaneous Expenses Net Income $250,000 $250,000 S285,000 50,000 35,000 24,000 11,900 $136,000 40.000 24,000 10.500 9.500 (220,000) 30,000 (405.900) $ 81,500 Additional Information I. In 20X2, Skate developed a patent for a high-speed drill bit that Pond planned to market extensively. In accordance with generally accepted accounting standards, Skate charges all research and development costs to expense in the year the expenses are incurred. At January 1,20X5, the market value of the patent rights was estimated to be S50,000. Pond believes the patent will be of value for the next 20 years. The remainder of the differential is assigned to buildings and equipment, which also had a 20-year estimated economic life at January 1.20X5. All of Skate's other assets and liabilities identified by Pond at the date of acquisition had book values and fair values that were relatively equal. Page 368 2. On December 31, 20X7, Pond sold a building to Skate for $65,000 that it had purchased for $125.000 and depreciated on a straight-line basis over 25 3. On July 1, 20X6, Skate sold land that it had purchased for $22,000 to Pond for S35,000. Pond is planning to build a new warehouse on the property prior to the Both Pond and Skate paid dividends in 20xs. years. At the time of sale, Pond reported accumulated depreciation of $75.000 and a remaining life of 10 years. end of 20x9