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ime Company holds 80 percent of Suspect Company's stock, acquired on January 1, 20X2. for $174,000. On the acquisition date, the ir value of the

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ime Company holds 80 percent of Suspect Company's stock, acquired on January 1, 20X2. for $174,000. On the acquisition date, the ir value of the noncontrolling interest was $43.500. Suspect reported retained earnings of $50,000 and had $100,000 of common ock outstanding. Prime uses the fully adjusted equity method in accounting for its Investment in Suspect rial balance data for the two companies on December 31, 20X6. are as follows Prime COUNY Credit $ 25,000 Suspect Conny Debit Credit $ 11,00 2. be, 130, Land 175,4 13. 4, Cash & Accounts Receivable Inventory Buildings & Equipment Investment in Supect Co. Cost of Goods Sold Depreciation and Amortization Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Gain Sale of Equipment Income froe Suspect Co. Total 14.00 30, $ 221, 52.00 150, 300.00 377.00 300, 15.000 $ 19,00 21,00 5e, 100,000 35,600 160,000 $1,441,840 $1,401, 40 545. $45, Additional Information 1. At the date of combination, the book values and fair values of all separately identifiable assets and abilities of Suspect were the same. At December 31, 20X6, the management of Prime reviewed the amount attributed to goodwill as a result of its purchase of Suspect stock and concluded an impairment loss of $19.575 should be recognized in 2006 and shared proportionately between the controlling and noncontrolling Shareholders 2. On January 1, 20X5, Suspect sold land that had cost $8,000 to Prime for $18,000 3. On January 1 20X6, Prime sold to suspect equipment that it had purchased for $82.500 on January 1, 20xt. The equipment has a total economic life of 15 years and was sold to Suspect for $70,000. Both companies use straight-line depreciation 4. There was $7.500 of intercompany receivables and payables on December 31, 20X6. Required: . Give all consolidation entries needed to prepare a consolidation worksheet for 20x6. (If no entry is required for a transaction event, select "No journal entry required in the first account fleld.) Consolidation Worksheet Entries B D E F G Record the basic consolidation entry

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