Legoria Co. acquired 75 Percent of Joey Co. on January 1, 2016, for $96,000. At that date, the fair value of the non-controlling interest was $32,000. The book value of Joey Co.s net assets at acquisition was $100,000. The book values and fair values of Joey Co.s assets and liabilities were equal, except for Joey Cos buildings and equipment, which were worth $20,000 more than book value. Buildings and equipment are depreciated on a 10-year basis.

Although Goodwill is not amortized, the management of Legoria Co. concluded at December 31, 2017 that goodwill from its purchase of Joey Cos common shares had been impaired and the correct carrying value was $2,500. Trial balance data for Legoria and Joey Co on December 31, 2017, are as follows:

	Legoria	Joey
Cash	$68,500	$32,000
Accounts Receivable	85,000	14,000
Inventory	97,000	24,000
Land	50,000	25,000
Buildings and Equipment	350,000	150,000
Investment in Joey Co. Stock	106,875
Cost of Goods Sold	145,000	114,000
Wage Expense	35,000	20,000
Depreciation Expense	25,000	10,000
Interest Expense	12,000	4,000
Other Expense	23,000	16,000
Dividends Declared	30,000	20,000
Accumulated Depreciation	(170,000)	(50,000)
Accounts Payable	(51,000)	(15,000)
Wages Payable	(14,000)	(6,000)
Notes Payable	(150,000)	(50,000)
Common Stock	(200,000)	(60,000)
Retained Earnings, 1/1/2017	(131,000)	(48,000)
Sales	(290,000)	(200,000)
Equity in Earnings of Joey Co.	(21,375)
Total	$0	$0

Required:

1) Give all the Journal Entries recorded by Legoria Co with regards to its Investment in Joey CO. during 2017.

2) Prepare a Three-Part consolidation balance sheet work-paper (with eliminating entries) as of December 31, 2017.