**ONLY NEED PART B**

Exercise 4-8 On May 1, 2015, Peters Company purchased 80% of the common stock of Smith Company for $45,400. Additional data concerning these two companies for the years 2015 and 2016 are: 2015 2016 Peters SmithPeters Smith $19,100 $94,800 Common stock Other contributed capa 41,200 10,900 41,200 10,900 Retained earnings, 1/1 Net income (loss) Cash dividends (11/30) 14,600 2,200 5,100 $94,800 $19,100 86,500 10,800 137,800 53,000 65,900 44,400 40,500 (4,600 ) Any difference between book value and the value implied by the purchase price relates to Smith Company's land. Peters Company uses the cost method to record its investment. (a) Your answer is correct. Prepare the workpaper entries that would be made on a consolidated statements workpaper for the years ended December 31, 2015 and 2016 for Peters Company and its subsidiary, assuming that Smith Company's income is earned evenly throughout the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2015 Dividend Income 1760 Dividends Declared - Subsidiary Company 1760 (To record dividend income)