Matthews Co. obtained all of the common stock of Jackson Co. on December 31, 2018. As of that date, Jackson had the following trial balance:

Debit Credit Accounts payable $ 60,000 Accounts receivable $ 50,000 Paid In Capital $ 60,000 Building - 20 year life $ 140,000 Cash and stort term investments $ 70,000 Common stock $ 300,000 Equipment - 8 year life $ 240,000 Inventory $ 110,000 Land $ 90,000 Long term liability $ 180,000 Retained earnings $ 120,000 Supplies $ 20,000 $ - Total $ 720,000 $ 720,000 During 2019, Jackson reported net income of $86,000 while paying dividends of $22,000. During 2020, Jackson reported net income of $102,000 while paying dividends of $26,000. Assume that Matthews Co. acquired the common stock of Jackson Co. for $588,000 in cash. As of January 1, 2019, Jackson's land had a fair value of $102,000, its buildings were valued at $188,000 and its equipment was appraised at $216,000. Jackson Co. has in-process R&D that was fair valued at $35,000 and is expected to have an indefinite estimated life. Matthews decided to use the equity method for this investment. Required: Prepare consolidation worksheet entries for December 31, 2018. Prepare the equity method of accounting entries recorded by Matthews Co. during 2019. Prepare consolidation worksheet entries for December 31, 2019. Prepare the equity method of accounting entries recorded by Matthews Co. during 2020. Prepare consolidation worksheet entries for December 31, 2020.