Palermo Incorporated purchased 80 percent of the outstanding stock of Salina Ranching Company, located in Australia, on January 1, 20X3. The purchase price in Australian dollars (A$) was A$200,000, and A$40,000 of the differential was allocated to plant and equipment, which is amortized over a 10-year period. The remainder of the differential was attributable to a patent. Palermo Incorporated amortizes the patent over 10 years. A trial balance translated to U. S. dollars for Salina Ranching is as follows:

Salina Ranching Company
Trial Balance Translated
December 31, 20X3
	Australian Dollars	Exchanges Rate	U.S. Dollars
Cash	A$ 44,100	0.60	$ 26,460
Accounts Receivable (net)	72,000	0.60	43,200
Inventory	86,000	0.60	51,600
Plant and Equipment	240,000	0.60	144,000
Cost of Goods Sold	330,000	0.65	214,500
Depreciation Expense	24,000	0.65	15,600
Operating Expenses	131,500	0.65	85,475
Interest Expense	5,700	0.65	3,705
Dividends Declared	9,000	0.67	6,030
Total			$ 590,570
Accumulated other comprehensive
Income - Translation Adjustment(debit)			16,760
Total Debits	A$ 942,300		$ 607,330
Accumulated Depreciation	A$ 60,000	0.60	$ 36,000
Accounts Payable	53,800	0.60	32,280
Payable to Palermo Incorporated	10,800	0.60	6,480
Interest Payable	3,000	0.60	1,800
12% Bonds Payable	100,000	0.60	60,000
Premium on Bonds	5,700	0.60	3,420
Common Stock	90,000	0.70	63,000
Retained Earnings	40,000	0.70	28,000
Sales	579,000	0.65	376,350
Total Credits	A$ 942,300		A$ 607,330

Assume that the Australian dollar (A$) is the functional currency and that Palermo uses the fully adjusted equity method for accounting for its investment in Salina Ranching. A December 31, 20X3, trial balance for Palermo Incorporated follows. Use this translated trial balance for completing this problem.

Item	Debit	Credit
Cash	$ 38,000
Accounts Receivable (net)	140,000
Receivable from Salina Ranching	6,480
Inventory	128,000
Plant and Equipment	500,000
Investment in Salina Ranching	152,064
Cost of Goods Sold	600,000
Depreciation Expense	28,000
Operating Expenses	204,000
Interest Expense	2,000
Dividends Declared	50,000
Translation Adjustment	22,528
Accumulated Depreciation		$ 90,000
Accounts Payable		60,000
Interest Payable		2,000
Common Stock		500,000
Retained Earnings, January 1, 20X3		179,656
Sales		1,000,000
Income from Subsidiary		39,416
Total	$ 1,871,072	$ 1,871,072

Required:

A.) Prepare a set of consolidating entries, in general journal form, for the entries required to prepare a comprehensive consolidation worksheet (including other comprehensive income) as of December 31, 20X3.

B.) Prepare a comprehensive consolidation worksheet as of December 31, 20X3.