Paper Corporation acquired 75 percent of Script Company's common stock on May 15, 20X3, at underlying book value. Script's balance sheet on December 31, 20X6, contained these amounts: Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets $ 75,000 Accounts Payable 50,000 Bonds Payable 125,000 Common Stock ($10 par) 700,000 Additional Paid-In Capital (220,000) Retained Earnings $ 730,000 Total Liabilities & Equities $ 30,000 200,000 100,000 80,000 320,000 $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.) Book value decreases by s 15,000 A Record the entry to recognize the change in the value of the investment. Note: Enter debits before credits. Event Debit Credit 1 General Journal Retained earnings Investment in Script Company 15,000 15,000 Record entry Clear entry View general journal (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 fleld.) view transaction list Consolidation Worksheet Entries Prepare the entry on Paper's books to record its sale of Script shares to Script. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal (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.) view transaction list Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits. Event Accounts Debit Credit 1 Record entry Clear entry view consolidation entries