Palmer Corporation acquired 70 percent of Krown Corporations ownership on January 1, 20X8, for $148,400. At that date, Krown reported capital stock outstanding of $126,000 and retained earnings of $86,000, and the fair value of the noncontrolling interest was equal to 30 percent of the book value of Krown. During 20X8, Krown reported net income of $33,600 and comprehensive income of $39,600 and paid dividends of $28,600.

Required:
a.	Present all equity-method entries that Palmer would have recorded in accounting for its investment in Krown during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1.Record the initial investment in Krown Corp 2. Record Palmer Corp.'s 70% share of Krown Corp.'s 20X8 income. 3. Record Palmer Corp.'s 70% share of Krown Corp.'s 20X8 dividend. 4. Record Palmer Corp.'s proportionate share of OCI from Krown Corp.

b.

Present all consolidation entries needed at December 31, 20X8, to prepare a complete set of consolidated financial statements for Palmer Corporation and its subsidiary. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record the basic consolidation entry. 2. Record the Other Comprehensive Income entry.