Pirate Corporation acquired 60 percent ownership of Ship Company for $96,000 on January 1, 20X8, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of the book value of Ship Company. Accumulated depreciation on Buildings and Equipment was $75,000 on the acquisition date. Trial balance data at December 31, 20X9, for Pirate and Ship are as follows:

	Pirate Corporation		Ship Company
Item	Debit	Credit	Debit	Credit
Cash	18,000		11,000
Accounts Receivable	45,000		21,000
Inventory	40,000		30,000
Buildings & Equipment	585,000		257,000
Investment in Row Company			44,000
Investment in Ship Company	116,400
Cost of Goods Sold	170,000		97,000
Depreciation Expense	30,000		10,000
Interest Expenses	8,000		3,000
Dividends Declared	40,000		20,000
Accumulated Depreciation		170,000		95,000
Accounts Payable		75,000		24,000
Bonds Payable		100,000		50,000
Common Stock		200,000		100,000
Retained Earnings		231,000		70,000
Accumulated Other Comprehensive Income		6,000		10,000
Other Comprehensive Income from Ship Company (OCI) - Unrealized Gain on Investments		2,400
Unrealized Gain on Investments (OCI)				4,000
Sales		250,000		140,000
Income from Ship Company		18,000
Totals	1,052,400	1,052,400	493,000	493,000

Additional Information

Ship purchased stock of Row Company on January 1, 20X8, for $30,000 and classified the investment as available-for-sale securities. The value of Row's securities increased to $40,000 and $44,000, respectively, at December 31, 20X8, and 20X9. Assume that depreciation expense was $10,000 for the previous year as well.

Required

A.Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9.

A-1: Record the basic consolidation entry.

A-2: Record the entry for Other Comprehensive Income

A-3: Record the optional accumulated depreciation consolidation entry.

B. Prepare a three-part consolidation worksheet for 20X9 in good form. (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.)

Pirate Corporation and Subsidiary
Worksheet for Consolidated Financial Statements
December 31, 20X9
			Consolidation Entries
	Pirate Corp.	Ship Co.	DR	CR	Consolidated
Income Statement
Sales
Less: COGS
Less: Depreciation Expense
Less: Interest Expenses
Income from Ship Co.
Consolidated net income
NCI in net income
Controlling interest in Net Income
Statement of Retained Earnings
Beginning balance
Net income
Less: Dividends declared
Ending balance
Balance Sheet
Cash
Accounts receivables
Inventory
Buildings & Equipment
Less: Accumulated depreciation
Investment in Row Co.
Investment in Ship Co.
Total Assets
Accounts payable
Bonds payable
Common stock
Retained earnings
Accumulated OCI
NCI in NA of Ship Co.
Total Liabilities & Equity
Other Comprehensive Income
Accumulated other comprehensive income, 1/1/20X9
Other comprehensive income from Ship Co.
Unrealized gain on investments
Other comprehensive income to NCI
Accumulated Other Comprehensive Income, 12/31/20X9