Emerald Corporation acquired 10,500 shares of the common stock and 800 shares of the 8 percent preferred stock of Pert Company on December 31, 20X4, at the book value of the underlying stock interests. At that date, the fair value of the noncontrolling interest in Pert's common stock was equal to 30 percent of the book value of its common stock interest. Pert reported the following balance sheet amounts on January 1, 20X5:

Cash	$	30,000		Accounts Payable	$	20,000
Accounts Receivable		70,000		Bonds Payable		100,000
Inventory		120,000		Preferred Stock		200,000
Buildings & Equipment		600,000		Common Stock		150,000
Less: Accumulated Depreciation		(150,000	)	Retained Earnings		200,000
Total Assets	$	670,000		Total Liabilities & Equities	$	670,000

Pert's preferred stock is $100 par value, and its common stock is $10 par value. The preferred dividends are cumulative and are two years in arrears on January 1, 20X5. Pert reports net income of $34,000 for 20X5 and pays no dividends.

Required:

a.

Present the worksheet consolidation entries needed to prepare a consolidated balance sheet on January 1, 20X5. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

record the basic consolidation entry.

b.

Assuming that Emerald reported income from its separate operations of $80,000 in 20X5, compute the amount of consolidated net income and the amount of income to be assigned to the controlling shareholders in the 20X5 consolidated income statement. Consolidated net income income to controlling interest