Part $2$

At year end, Puerto Rico Corp. found that a $$10,000$ impairment of goodwill took place during

At the end of $2024,$ Puerto Rico owed San Juan $$25,000,$ and San Juan owed Puerto Rico

$$45,000.$ The trial balance data for Puerto Rico Corp. and San Juan Corp. on December $31,2024$

are below:

Required:

A$.$ Prepare the journal entries Puerto Rico made during $2024$ related to its investment in Sandusky.

B$.$ Prepare the consolidation$/$eliminating entries needed to consolidate the two companies at the

end of $2024.$

C$.$ Prepare the consolidation working paper for December $31,2024.$ Put required CEs$/$EEs in their

proper columns $($similar to Figure $5-4).$

Check Figures:

Net Assets: $$3,175,000$

NCI in Net Income of San Juan: $$27,000$

NCI in Net Assets of San Juan: $$159,000$