Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $597,840, an amount $20,400 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Set Company 171,200 119,700 (50,300 ) 240,600 Consolidated Balances 964,200 416,600 (88,800 ) 1,292,000 Dividends declared 12/31/14 retained earnings to the balance sheet Set Company's stockholders' equity is composed of common stock and retained earnings only. (a) Prepare the eliminating entries required for the preparation of a consolidated statements workpaper on December 31, 2014, assuming the use of the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to O decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit Dividend Income 45,270 45,270 Dividends Declared - Subsidiary Company (To record dividend income) Common Stock - Subsidiary Company Retained Earnings - Subsidiary Company Difference between Implied and Book Value Investment in Subsidiary Noncontrolling Interest (To eliminate investment in subsidiary and create noncontrolling interest) (To eliminate excess of the book value of equity acquired.)