Paper Corporation acquired 75 percent of Script Company's common stock on May 15, 20X3, at underlying book value. Scripts balance sheet on December 31, 20X6, contained these amounts:

Cash	$ 75,000	Accounts Payable	$ 30,000
Accounts Receivable	50,000	Bonds Payable	200,000
Inventory	125,000	Common Stock ($ 10 par)	100,000
Buildings and Equipment	700,000	Additional Paid-In Capital	80,000
Less: Accumulated Depreciation	(220000)	Retained Earnings	320,000
Total Assets	$ 730,000	Total Liabilities and Equities	$ 730,000

During 20X7, Paper earned operating income of $90,000, and Script reported net income of $45,000. Neither company declared any dividends during 20X7. Assume Paper Corporation has only no-par stock outstanding.

Script is considering repurchasing 1,000 of its outstanding shares as treasury stock for $68 each.

Assuming Script purchases the shares from Nonaffiliated Company on January 1, 20X7:

(1) Compute the effect on the book value of the shares held by Paper.

(2) Prepare the entry on Papers books to record the change in the book value of its investment in Scripts shares.

(3) Present the worksheet consolidation entry needed on December 31, 20X7 to complete a worksheet.

Assuming Script purchases the shares directly from Paper on January 1, 20X7:

(1) Compute the effect on the book value of the shares held by Paper.

(2) Prepare the entry on Papers books to record its sale of Script shares to Script.

(3) Present the worksheet consolidation entry needed on December 31, 20X7 to complete a worksheet.