Item Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $48,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited on December 31, 20X4, the trial balances of the two companies are as follows: Proud Corporation Spirited Company Debit Credit Debit Current Assets Credit $ 249,000 $168,000 Depreciable Assets 513,000 Investment in Spirited Company 302,000 128,960 Depreciation Expense 22,000 12.000 Other Expenses 148,000 30,000 Dividends Declared 53,000 27,800 Accumulated Depreciation $ 198,000 $72.000 Current Liabilities 65,000 45,000 Long-Term Debt 128,160 191,300 Common Stock 181,000 84,000 Retained Earnings 265,000 54,800 Sales 236,000 143,000 Income from Spirited Company 40,800 $1,113,960 $1,113,960 5589,880 $589,800 Required: a. Prepare all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Worksheet Entries