On January 1, 20X8, Vector Company acquired 80 percent of Scalar Company's ownership on for $120,000 cash. At that date, the fair value of the noncontrolling interest was $30,000. The book value of Scalar's net assets at acquisition was $125,000. The book values and fair values of Scalar's assets and liabilities were equal, except for buildings and equipment, which were worth $15,000 more than book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Vector concluded at December 31, 20X8, that goodwill from its acquisition of Scalar shares had been impaired and the correct carrying amount was $5,000. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. No additional impairment occurred in 20X9. Financial Statements for Vector and Scalar on December 31, 20X9, are provided on the following page: Required: a) Provide all the journal entries recorded by Vector during 20X9 with regard to its investment in Scalar during 20X9 b) Using the worksheet below provide all eliminating entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9. c) Using the worksheet template below, prepare a three-part consolidation worksheet as of December 31, 20X9.

Vector and Scalar company Consolidated Worksheet as of December 31, 200x9 Book Value Scalar E NCI 20% BVCommon Stock APIC Consolidation Entries Vector Scalar Dr Cr. Income Statement: Sales Cost of Sales 400,000 200,000 (180,0001 (100,000; 15,000 1,000 Balances, 1/1/x9 Add: Equity in N Less: Dividends Balances. 12/31/XS Basic Consolidation Entry reciation Ex S&A Ex Income from Scalar 115,000 18,000 93,000 Net Income 24,000 NCI In Net lcome Cl in Net Income Statement of RE: Balance 93,000 24,000 dd: Net Income Less: Dividends Balance, 12/31/x9 Balance Sheet 181,000 93,000 (40,000 234,000 24,000 0,000 64,000 Excess Value Ana Scalar Under or (over Valuation of Net Assets Element Acc Dep Goadwil Acct, Excess Cost NCI 20% 240,000 150,00050,000 300,000 150,000 150,000 144,800 Remaining Life Balances, 1/1/x0 Less: Amortization Balances, 12/31/X9 Excess Value 85,000 10 Land s and Equl Iny in Scaler Co Amortized Excess Value Reclassification Entry: Total Assets Liabilities Common Stock Retalned Earnin NCI in NA of Scalar 684,800 249,000 300,800 150,000 234,00064,000 85,000 Total Liab & E 684,800 249,000 Vector and Scalar company Consolidated Worksheet as of December 31, 200x9 Book Value Scalar E NCI 20% BVCommon Stock APIC Consolidation Entries Vector Scalar Dr Cr. Income Statement: Sales Cost of Sales 400,000 200,000 (180,0001 (100,000; 15,000 1,000 Balances, 1/1/x9 Add: Equity in N Less: Dividends Balances. 12/31/XS Basic Consolidation Entry reciation Ex S&A Ex Income from Scalar 115,000 18,000 93,000 Net Income 24,000 NCI In Net lcome Cl in Net Income Statement of RE: Balance 93,000 24,000 dd: Net Income Less: Dividends Balance, 12/31/x9 Balance Sheet 181,000 93,000 (40,000 234,000 24,000 0,000 64,000 Excess Value Ana Scalar Under or (over Valuation of Net Assets Element Acc Dep Goadwil Acct, Excess Cost NCI 20% 240,000 150,00050,000 300,000 150,000 150,000 144,800 Remaining Life Balances, 1/1/x0 Less: Amortization Balances, 12/31/X9 Excess Value 85,000 10 Land s and Equl Iny in Scaler Co Amortized Excess Value Reclassification Entry: Total Assets Liabilities Common Stock Retalned Earnin NCI in NA of Scalar 684,800 249,000 300,800 150,000 234,00064,000 85,000 Total Liab & E 684,800 249,000