On January 1, 2013, Blue Company acquired 70 percent of Green Companys outstanding common stock for $658,000. The fair value of the noncontrolling interest at the acquisition date was $282,000. Green reported stockholders equity accounts on that date as follows:

Common stock$10 par value	$	300,000
Additional paid-in capital		40,000
Retained earnings		460,000

In establishing the acquisition value, Blue determined that in Green's accounting records it has undervalued a building (with a five-year life) by $40,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years.

During the subsequent years, Green sold Blue inventory at a 30 percent gross profit rate. Blue consistently sold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following:

Year	Transfer Price		Inventory Remaining at Year-End (at transfer price)
2013	$	70,000		$	15,000
2014		90,000			17,000
2015		100,000			23,000

In addition, Blue sold Green a fully depreciated equipment on January 1, 2014, for $41,000. The equipment had originally cost Blue $60,000. Green plans to depreciate these assets over a 5-year period.

In 2015, Green earns a net income of $190,000 and distributes $50,000 in cash dividends. These figures increase the subsidiarys Retained Earnings to a $790,000 balance at the end of 2015.

Blue employs the equity method of accounting and reports $127,340 investment income for 2015 with an Investment account balance of $833,770. Under these circumstances, prepare the worksheet entries required for the consolidation of Blue Company and Green Company. (Ignore entry [N] in our notes - focus on [S, A, I, D, E] and other intra-entity sales entries.)