Mega Corporation purchased 90 percent of Tarp Companys voting common shares on January 1, 20X2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Tarp Company. Mega also purchased $96,000 of 6 percent, five-year bonds directly from Tarp on January 1, 20X2, for $100,000. The bonds pay interest annually on December 31. The trial balances of the companies as of December 31, 20X4, are as follows:

	Mega Corporation						Tarp Company
Item	Debit			Credit			Debit			Credit
Cash & Receivables	$	37,000					$	51,600
Inventory		184,000						88,000
Buildings & Equipment		401,000						251,000
Investment in Tarp Company Stock		135,216
Investment in Tarp Company Bonds		97,600
Cost of Goods Sold		76,000						69,800
Depreciation Expense		18,000						13,000
Interest Expense		15,760						4,960
Dividends Declared		28,000						18,000
Accumulated Depreciation				$	135,000					$	75,000
Current Payables					111,600						67,760
Bonds Payable					196,000						96,000
Bond Premium											1,600
Common Stock					113,000						73,000
Retained Earnings					230,000						43,000
Sales					155,000						140,000
Interest Income					4,960
Income from Tarp Co.					47,016
Total	$	992,576		$	992,576		$	496,360		$	496,360

Required:

a.

Prepare the journal entry or entries for 20X4 on Megas books related to its investment in Tarp Company stock.

b.

Prepare the journal entry or entries for 20X4 on Megas books related to its investment in Tarp Company bonds.

c.

Prepare the journal entry or entries for 20X4 on Tarps books related to its bonds payable

d.	Prepare the consolidation entries needed to complete a consolidated worksheet for 20X4.