Passenger Products purchased $65$ percent of Seat Sales Company$$s stock at underlying book value on January $1,20$X$3.$ At that date, the fair value of the noncontrolling interest was equal to $35$ percent of the book value of Seat Sales. Seat Sales reported shares outstanding of $$390,000$ and retained earnings of $$120,000.$ During $20$X$3,$ Seat Sales reported net income of $$45,000$ and paid dividends of $$4,500.$ In $20$X$4,$ Seat Sales reported net income of $$74,000$ and paid dividends of $$20,000.$

The following transactions occurred between Passenger Products and Seat Sales in $20$X$3$ and $20$X$4$:

Seat Sales sold camera equipment to Passenger for a $$30,000$ profit on December $31,20$X$3.$ The equipment had a five$-$year estimated economic life remaining at the time of intercompany transfer and is depreciated on a straight$-$line basis.

Passenger sold land costing $$54,000$ to Seat Sales on June $30,20$X$4,$ for $$65,000.$

Required:

a$.$ Assuming that Passenger uses the modified equity method to account for its investment in Seat Sales:

$(1)$ Prepare the journal entries recorded on Passenger$$s books in $20$X$4$ related to its investment in Seat Sales.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

$(2)$ Prepare all consolidation entries needed to prepare a consolidation worksheet for $20$X$4.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

b$.$ Assuming that Passenger uses the cost method to account for its investment in Seat Sales:

$(1)$ Prepare the journal entries recorded on Passenger$$s books in $20$X$4$ related to its investment in Seat Sales.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

$(2)$ Prepare all consolidation entries needed to prepare a consolidation worksheet for $20$X$4.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.