On January 1, 20X5, Pond Corporation acquired 80 percent of Skate Companys stock by issuing common stock with a fair value of $180,000. At that date, Skate reported net assets of $150,000. The fair value of the noncontrolling interest was $45,000. Assume Pond uses the fully adjusted equity method. The balance sheets for Pond and Skate at January 1, 20X8, and December 31, 20X8, and income statements for 20X8 were reported as follows:

20X8 Balance Sheet Data
		Pond Corporation				Skate Company
		January 1		December 31		January 1		December 31
Cash		$ 40,400		$ 68,400		$ 10,000		$ 47,000
Accounts Receivable		120,000		130,000		60,000		65,000
Interest & Other Receivables		40,000		45,000		8,000		10,000
Inventory		100,000		140,000		50,000		50,000
Land		50,000		50,000		22,000		22,000
Buildings & Equipment		400,000		400,000		240,000		240,000
Accumulated Depreciation		(150,000)		(185,000)		(70,000)		(94,000)
Investment in Skate Company Stock		185,600		200,100
Investment in Tin Co. Bonds		135,000		134,000
Total Assets		$921,000		$982,500		$320,000		$340,000
Accounts Payable		$ 60,000		$ 65,000		$ 16,500		$ 11,000
Interest & Other Payables		40,000		45,000		7,000		12,000
Bonds Payable		300,000		300,000		100,000		100,000
Bond Discount						(3,500)		(3,000)
Common Stock		150,000		150,000		30,000		30,000
Additional Paid-in Capital		155,000		155,000		20,000		20,000
Retained Earnings		216,000		267,500		150,000		170,000
Total Liabilities & Equities		$921,000		$982,500		$320,000		$340,000

20X8 Income Statement Data
		Pond Corporation				Skate Company
Sales				$450,000				$250,000
Income from Skate Company				22,500
Interest Income				14,900
Total Revenue				$487,400				$250,000
Cost of Goods Sold		$285,000				$136,000
Other Operating Expenses		50,000				40,000
Depreciation Expense		35,000				24,000
Interest Expense		24,000				10,500
Miscellaneous Expenses		11,900		(405,900)		9,500		(220,000)
Net Income				$ 81,500				$ 30,000

Additional Information

Complete the specific consolidation entries related to the Additional Information items below!

1.On December 31, 20X7, Pond sold a building to Skate for $65,000 that it had purchased for $125,000 and depreciated on a straight-line basis over 25 years. At the time of sale, Pond reported accumulated depreciation of $75,000 and a remaining life of 10 years.

2.On July 1, 20X6, Skate sold land that it had purchased for $22,000 to Pond for $35,000. Pond is planning to build a new warehouse on the property prior to the end of 20X9.