Peanut Company acquired 90 percent of Snoopy Companys outstanding common stock for $279,000 on January 1, 20X8, when the book value of Snoopys net assets was equal to $310,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, follow:

	Peanut Company									Snoopy Company
	Debit				Credit					Debit				Credit
Cash		$	178,000								$	74,000
Accounts Receivable			176,000									81,000
Inventory			208,000									76,000
Investment in Snoopy Company			320,400
Land			208,000									89,000
Buildings and Equipment			709,000									186,000
Cost of Goods Sold			194,000									111,000
Depreciation Expense			49,000									9,000
Selling & Administrative Expense			210,000									44,000
Dividends Declared			86,000									30,000
Accumulated Depreciation						$	436,000								$	18,000
Accounts Payable							72,000									57,000
Bonds Payable							181,000									75,000
Common Stock							492,000									187,000
Retained Earnings							308,000									123,000
Sales							781,000									240,000
Income from Snoopy Company							68,400									0
Total		$	2,338,400			$	2,338,400				$	700,000			$	700,000

Required: a. Prepare any equity method entry(ies) related to the investment in Snoopy Company during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare a consolidation worksheet for 20X8. Assume the company prepares the optional Accumulated Depreciation Consolidation Entry. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

Answer is complete and correct. No Event Credit Debit 279,000 1 General Journal Investment in Snoopy Co. Cash 1 279,000 2 2 68,400 Investment in Snoopy Co. Income from Snoopy Co. 68,400 3 27,000 Cash Investment in Snoopy Co. 27,000 PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X8 Consolidation Entries Peanut Co. Snoopy Co. DR CR Consolidated Income Statement $ 781,000 $ 240,000 IS (194,000) (49,000) (210,000) 68,400 (111,000) (9.000) (44,000) 1,021,000 (305,000) (58,000) (254,000) 3,600 407,600 (11.200) 396.400 0 396.400 76,000 0 Sales Less: COGS Less: Depreciation expense Less: Selling & Administrative Expense Income from Snoopy Co. Consolidated net income NCI in net incom Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Assets 64.800 X 64.800 11.200 X $ 76,000 IS 0 $ 396,400 $ 76,000 0 IS $ 123.000 IS $ 308,000 396,400 (86,000) $ 123,000 78,000 76.000 (30.000) $ 169,000 308,000 396,400 (86,000) 618,400 30,000 $ 30,000 $ 618,400 s 199,000 IS IS 252.000 Cash Accounts receivable $ 74,000 81,000 76.000 Inventory Investment in Snoopy Co. Land $ 178,000 176,000 208,000 320,400 208,000 709,000 OOOOOO 0 257.000 284,000 320,400 297,000 895,000 (418,000) 89,000 186,000 Buildings and equipment Accumulated depreciation Nox (436,000) $ 1,363,400 18,000 $ 524.000 Total Assets $ 0 0 IS 1.887.400 $ $ 72,000 181.000 Liabilities & Stockholders' Equity Accounts payable Bonds payable Common stock Retained earnings NCI in NA of Snoopy Co. Total Liabilities & Stockholders' Equity $ 57,000 75,000 187,000 169,000 129,000 256,000 492,000 618,400 187,000 199,000 30,000 492.000 618,400 0 IS 1,363,400 $ 488.000 $ 386.000 $ 30.000 IS 1,495,400