On October 1, 2015, Para Company purchased 90% of the outstanding common stock of Star Company for $229,200. Additional data concerning Star Company for 2015 follows:

Common stock $76,500

Other contributed capital 29,900

Retained earnings, 1/1 72,100

Net income 55,800

Dividends declared and paid (12/15) 10,400

Any difference between book value and the value implied by the purchase price relates to goodwill. Para Company uses the partial equity method to record its investment in Star Company.

a) Prepare on Para Companys books journal entries to record the investment-related activities for 2015.

b) Prepare workpaper eliminating entries for a workpaper on December 31, 2015. Star Companys net income is earned evenly throughout the year.