P$4-35$ Comprehensive Problem: Wholly Owned Subsidiary L$04-5$ Corporation acquired $100$ percent ownership of Steak Products Company on January $1,20$X$1,$for. $200,000$On that dateSteak reported retained of and had $$100,000$ of common stock outstandingPrime has used the equity method in accounting for its investment in Steak The trial balances for the two companies on December $3120$X$5$appear below Additional Information the date of combination $($five years ago$),$ the fair value of Steak's depreciable assets was $50,000$ more than the book Accumulated depreciation at that date was $10,000$The differential assigned to depreciable assets be off over the following $10-$year period $2$ There was $$10,000$ of intercorporate receivables and payables at the end of $20$X$5$ Required all journal entries that Prime recorded during related to investment in Steak consolidation entries needed to prepare consolidated statements for $20$X$5$

P$4-35$ Comprehensive Problem: Wholly Owned Subsidiary

L$04-5$

Prime Corporation acquired $100$ percent ownership of Steak Products Company on January $1,20x1,$ for $$200,000.$ On that date, Steak reported retained eamings of $$50,000$ and had $$100,000$ of common stock outstanding. Prime has used the equity method in accounting for its investment in Steak.

The trial balances for the two companies on December $31,20$X$5,$ appear below.

Additional Information

On the date of combination $($five years ago$),$ the fair value of Steak's depreciable assets was $$50,000$ more than the book value. Accumulated depreciation at that date was $$10,000.$ The differential assigned to depreciable assets should be written off over the following $10-$year period.

There was $$10,000$ of intercorporate receivables and payables at the end of $205.$

Required

Grve all joumal entries that Prime recorded during $20$X$5$ related to its investment in Steak.

Give all consolidation entries needed to prepare consolidated statements for $20x5.$

Prepare a three$-$part works heet as of December $31,20$X$5.$

$\backslash$table$[[$Item$,\backslash$table$[[$Prime$],[$Corporation$]],\backslash$table$[[$Steak$],[$Products Company$]]],[$Debit$,$Credit,Debit,Credit$],[\backslash$table$[[$Cash & Receivables$],[$Inventory$],[$Land$],[$Buildings & Equipment$],[$Investment in Steak Products$],[$Cost of Goods Sold$],[$Depreciation Expense$],[$Inventory Losses$],[$Dividends Declared$],[$Accumulated Depreciation$],[$Accounts Payable$],[$Notes Payable$],[$Common Stock$],[$Retained Earnings$],[$Sales$],[$Income from Steak Products Company$]],\backslash$table$[[43,000],[260,000],[80,000],[500,000],[235,000],[120,000],[25,000],[15,000],[30,000]],\backslash$table$[[$$$205,000$