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 & Equipment		700,000			Additional Paid-In Capital		80,000
Less: Accumulated Depreciation		(220,000	)		Retained Earnings		320,000
Total Assets	$	730,000			Total Liabilities & 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. Required: a. 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. (Do not round intermediate calculations. Input the amount as positive value.)

(2) Prepare the entry on Papers books to record the change in the book value of its investment in Scripts shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

(3) Present the worksheet consolidation entry needed on December 31, 20X7 to complete a worksheet. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. 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. (Do not round intermediate calculations. Input the amount as positive value.)

(2) Prepare the entry on Papers books to record its sale of Script shares to Script. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

(3) Present the worksheet consolidation entry needed on December 31, 20X7 to complete a worksheet. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)