Required

a$.$ Give all eliminating entries required on December $31,20\mathrm{X3},$ to prepare consolidated financial statements.

b$.$ Prepare a three$-$part consolidation workpaper as of December $31,20\mathrm{X3}.$

Blake Corporation acquired 100 percent of Shaw Corporation's voting shares on January 1, 20X3, at underlying book value. At that date, the book values and fair values of Shaw's assets and liabili- ties were equal. Blake uses the equity method in accounting for its investment in Shaw. Adjusted trial balances for Blake and Shaw on December 31, 20X3, are as follows: Blake Corporation Shaw Corporation Item Debit Credit Debit Credit Current Assets $145,000 $105,000 Depreciable Assets (net) 325,000 225,000 Investment in Shaw Corporation Stock 170,000 Depreciation Expense 25,000 15,000 Other Expenses 105,000 75,000 Dividends Declared 40,000 10,000 Current Liabilities Long-Term Debt $ 50,000 $ 40,000 100,000 120,000 Common Stock 200,000 100,000 Retained Earnings 230,000 Sales 200,000 50,000 120,000 Income from Subsidiary 30,000 $810,000 $810,000 $430,000 $430,000