On January 1, 2016, Aronsen Company acquired 75 percent of Siedel Companys outstanding shares. Siedel had a net book value on that date of $580,000: common stock ($10 par value) of $280,000 and retained earnings of $300,000.

Aronsen paid $600,000 for this investment. The acquisition-date fair value of the 30 percent noncontrolling interest was $240,000. The excess fair value over book value associated with the acquisition was used to increase land by $212,000 and to recognize copyrights (12-year remaining life) at $48,000. Subsequent to the acquisition, Aronsen applied the initial value method to its investment account.

In the 20162017 period, the subsidiarys retained earnings increased by $120,000. During 2018, Siedel earned income of $82,000 while declaring $22,000 in dividends. Also, at the beginning of 2018, Siedel issued 2,000 new shares of common stock for $40 per share to finance the expansion of its corporate facilities. Aronsen purchased none of these additional shares and therefore recorded no entry.

Prepare the appropriate 2018 consolidation entries for these two companies.

1. Prepare Entry *C to convert the 1/1/18 balance to full accrual.

2. Prepare Entry C1 to record the adjustment for the subsidiary stock transaction.

3. Prepare Entry S to eliminate the subsidiary stockholders' equity accounts against the investment account and to recognize the noncontrolling interest.

4. Prepare Entry A to recognize the acquisition price allocated to land and copyrights.

5. Prepare Entry I to eliminate the intra-entity dividends recorded by the parent as income.

6. Prepare Entry E to recognize the current year amortization.