Nichols Company owns 80% of the stock of Bosely Company, which it acquired at underlying book value on August 30, 2006, At that date, the fair value of the noncontrolling interest was equal to 20% of the book value of Bosely Company. Summarized trial balance data for the two companies as of December 31, 2008, are as follows: Trial Balances at December 31, 2008 Nichols Company Debit Bosely Company Debit Credit Credit Cash and Accounts Receivable $145,000 Inventory Investment in Bosely Stock Buildings and Equipment (net) Current Liabilities Common Stock Retained Earnings Sales Income from Bosely Cost of Goods Sold Depreciation Expense Total On January 1, 2008, Nichol's inventory contained filters purchased for $60,000 from Bosely, which had produced the filters for $40,000. In 2008, Bosely spent $100,000 to produce additional filters, which it sold to Nichols for $150,000. By December 31, 2008 Nichols had sold all filters that had been on hand on January 1, 2008, but continued to hold in inventory $45,000 of the 2008 purchase from Bosely Required $ 90,000 220,000 268,000 270,000 110,000 180,000 150,000 200,000 472,000 250,000 36,000 30,000 90,000 220,000 200,000 Retained Earnings is a beginning of year amount. 175,000 30,000 140,000 20,000 S 1,108,000 $ 1,108,000 S 540,000 $ 540,000 1 Prepare all equity method entries for 2016 2 Prepare any necessary consolidation entries. 3 Prepare a consolidated income statement, consolidated statement of retained earnings and a consolidated balance sheet. Nichols Company owns 80% of the stock of Bosely Company, which it acquired at underlying book value on August 30, 2006, At that date, the fair value of the noncontrolling interest was equal to 20% of the book value of Bosely Company. Summarized trial balance data for the two companies as of December 31, 2008, are as follows: Trial Balances at December 31, 2008 Nichols Company Debit Bosely Company Debit Credit Credit Cash and Accounts Receivable $145,000 Inventory Investment in Bosely Stock Buildings and Equipment (net) Current Liabilities Common Stock Retained Earnings Sales Income from Bosely Cost of Goods Sold Depreciation Expense Total On January 1, 2008, Nichol's inventory contained filters purchased for $60,000 from Bosely, which had produced the filters for $40,000. In 2008, Bosely spent $100,000 to produce additional filters, which it sold to Nichols for $150,000. By December 31, 2008 Nichols had sold all filters that had been on hand on January 1, 2008, but continued to hold in inventory $45,000 of the 2008 purchase from Bosely Required $ 90,000 220,000 268,000 270,000 110,000 180,000 150,000 200,000 472,000 250,000 36,000 30,000 90,000 220,000 200,000 Retained Earnings is a beginning of year amount. 175,000 30,000 140,000 20,000 S 1,108,000 $ 1,108,000 S 540,000 $ 540,000 1 Prepare all equity method entries for 2016 2 Prepare any necessary consolidation entries. 3 Prepare a consolidated income statement, consolidated statement of retained earnings and a consolidated balance sheet