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 $70,000 to Nonaffiliated Company and recorded a $10,000 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		130,000							110,000
Buildings & Equipment		690,000							260,000
Investment in State Company		176,400
Cost of Goods Sold		206,000							96,000
Depreciation Expense		25,000							20,000
Other Expenses		26,000							30,000
Dividends Declared		19,000							14,000
Accumulated Depreciation				$	165,000						$	90,000
Accounts Payable					180,600							56,000
Bonds Payable					190,000							22,000
Common Stock ($10 par)					200,000							100,000
Additional Paid-In Capital					70,000							30,000
Retained Earnings					285,000							150,000
Sales					272,000							174,000
Income from State					16,800
Total	$	1,379,400		$	1,379,400			$	622,000		$	622,000

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. 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.)

b. Prepare a consolidation worksheet for 20X4. (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.)