Consolidated Worksheet at End of the Second Year of Ownership $($Equity Method$)$ Consolidated Worksheet at End of the Second Year of Ownership $($Equity Method$)$

On January $1,2020,$ Peter Corporation acquired $75$ percent of Student Company's net identifiable assets, at underlying

book value. The fair value of the noncontrolling interest was equal to $25$ percent of the book value of Sub at that date.

Peter uses the equity method in accounting for its ownership of Sub. On December $31,2022,$ the trial balances of the two

companies are as follows:

Required:

On January $1,2020,$ Peter Corporation acquired $75$ percent of Student Company's net identifiable assets, at underlying

book value. The fair value of the noncontrolling interest was equal to $25$ percent of the book value of Sub at that date.

Peter uses the equity method in accounting for its ownership of Sub. On December $31,2022,$ the trial balances of the two

companies are as follows:

Required:Requirement $2$: Give all consolidating entries required on December $31,2022,$ to prepare consolidated financial statements.