Penn Corporation purchased 80 percent ownership of State Company on January 1, 20X2, at underlying book value. At that date, the fair value of the noncontrolling Interest was equal to 20 percent of the book value of State. On January 1, 20X4, Penn sold 2,000 shares of State's stock for $75,000 to Nonaffiliated Company and recorded a $15,000 Increase in additional paid-in capital. Trial balances for the companies on December 31, 20X4, contain the following data: State Company Debit Credit $ 43, eee 59, eee 184,280 260,000 Penn Corporation Debit Credit 38, eee 79,000 124,280 670,000 175,200 2e2,eee 24,00 27,000 22,888 $ 169, eee 165,400 190, eee 2eeeee 71,eee 270, eee 276, eee 19,800 $1,361,200 $1,361,280 Cash Accounts Receivable Inventory Buildings & Equipment Investment in State Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock ($10 par) Additional Paid-In Capital Retained Earnings Sales Income from State Total 92,88 19,80 31,080 17,080 $ 94,880 58, eee 22,888 100,000 26,000 150,000 175,000 $625,000 $625,800 State's net Income was earned evenly throughout the year. Both companies declared and paid their dividends on December 31, 20X4. Penn uses the equity method in accounting for its Investment In State. Required: a. Prepare the consolidation entries needed to complete a worksheet for 20X4. (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