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 $65,000 to Nonaffiliated Company and recorded a $12,000 increase in additional paid-in capital. Trial balances for the companies on December 31, 20X4, contain the following data:

	Penn Corporation							State Company
	Debit			Credit				Debit			Credit
Cash	$	32,000						$	37,000
Accounts Receivable		75,000							55,000
Inventory		127,000							107,000
Buildings & Equipment		700,000							250,000
Investment in State Company		171,600
Cost of Goods Sold		206,000							96,000
Depreciation Expense		21,000							16,000
Other Expenses		30,000							34,000
Dividends Declared		20,000							15,000
Accumulated Depreciation				$	166,000						$	91,000
Accounts Payable					245,200							51,000
Bonds Payable					155,000							21,000
Common Stock ($10 par)					200,000							100,000
Additional Paid-In Capital					69,000							27,000
Retained Earnings					255,000							140,000
Sales					272,000							180,000
Income from State					20,400
Total	$	1,382,600		$	1,382,600			$	610,000		$	610,000

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. a. Prepare the consolidation entries needed to complete a worksheet for 20X4.