E5-16 Consolidation Entries for Subsidiary with Other Comprehensive Income LO 5-4

Purse Corporation acquired 70 percent of Scarf Corporations ownership on January 1, 20X8, for $147,000. At that date, Scarf reported capital stock outstanding of $125,000 and retained earnings of $85,000, and the fair value of the noncontrolling interest was equal to 30 percent of the book value of Scarf. During 20X8, Scarf reported net income of $33,000 and comprehensive income of $39,000 and paid dividends of $28,000.

b. Present all consolidation entries needed at December 31, 20X8, to prepare a complete set of consolidated financial statements for Purse Corporation and its subsidiary. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)