"Note the following information should be added to the problem.*

1. The information below replaces Depreciable Assets, net from the problem.

	Depreciable Assets	400,000		270,000
Less	Accumulated Depr.	(75,000)		(45,000)

2. The Parent (Police) owes the Subsidiary (Station) $2,000 at 2/31/x3. Assume account payable is included in current liabilities.

Instructions: (Replaces the instructions in the text pictured below.)

a. Record the three equity method entries required on the books of Police for the year ended 12/31/x3.

b. Record the three consolidation/elimination entries required on 12/31/x3.

c. Prepare a three-part consolidation worksheet as of 12/31/x3.

You can use the following link-

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,as guidance when preparing the consolidation worksheet. Thanks and I will rate accordingly.

E4-20 Basic Consolidation Worksheet LO 4-5 Police Corporation acquired 100 percent of Station Corporation's voting shares on January 1, 20X3, at underlying book value. At that date, the book values and fair values of Station's assets and liabilities were equal. Police uses the equity method in accounting for its investment in Station. Adjusted trial balances for Police and Station on December 31, 20X3, are as follows: Station Corporation Debit Credit $ 105,000 225,000 Item Current Assets Depreciable Assets (net) Investment in Station Corporation Depreciation Expense Other Expenses Dividends Declared Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Station Corporation Police Corporation Debit Credit $ 145,000 325,000 170,000 25,000 105,000 40,000 $ 50,000 100,000 200,000 230,000 200,000 30,000 $ 810,000 $ 810,000 15,000 75,000 10,000 $ 40,000 120,000 100,000 50,000 120,000 $430,000 $430,000