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 $91,000 of 6 percent, five-year bonds directly from Tarp on January 1, 20X2, for $95,000. 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	$	22,000					$	36,600
Inventory		180,000						83,000
Buildings & Equipment		416,000						251,000
Investment in Tarp Company Stock		112,086
Investment in Tarp Company Bonds		92,600
Cost of Goods Sold		78,000						71,800
Depreciation Expense		19,000						14,000
Interest Expense		15,460						4,660
Dividends Declared		29,000						19,000
Accumulated Depreciation				$	134,000					$	74,000
Current Payables					120,500						79,460
Bonds Payable					191,000						91,000
Bond Premium											1,600
Common Stock					109,000						69,000
Retained Earnings					232,000						39,000
Sales					141,000						126,000
Interest Income					4,660
Income from Tarp Co.					31,986
Total	$	964,146		$	964,146		$	480,060		$	480,060

Required:

a.

Prepare the journal entry or entries for 20X4 on Megas books related to its investment in Tarp Company stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b.

Prepare the journal entry or entries for 20X4 on Megas books related to its investment in Tarp Company bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c.

Prepare the journal entry or entries for 20X4 on Tarps books related to its bonds payable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

d.

Prepare the consolidation entries needed to complete a consolidated worksheet for 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

e.

Prepare a three-part consolidated worksheet for 20X4. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)