Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1, 20X5, for $298,200. On that date, the noncontrolling interest had a fair value of $127,800 and the book value of Square's net assets was $390,000. The book values and fair values of Square's assets and liabilities were equal except for land that had a fair value $14,000 higher than book value. The amount attributed to goodwill as a result of the acquisition is not amortized and has not been impaired.

PLAZA CORPORATION AND SQUARE COMPANY Trial Balance Data December 31, 20X9
	Plaza Corporation							Square Company
Item	Debit			Credit				Debit			Credit
Cash and Receivables	$	91,300						$	95,000
Inventory		205,000							118,000
Land, Buildings, & Equipment (net)		289,000							269,000
Investment in Square Company		317,908
Cost of Goods & Services		188,000							138,000
Depreciation Expense		27,000							17,000
Dividends Declared		22,000							5,000
Sales & Service Revenue				$	312,000						$	212,000
Income from Square Company					48,008
Accounts Payable					55,000							20,000
Common Stock					195,000							160,000
Retained Earnings					530,200							250,000
Total	$	1,140,208		$	1,140,208			$	642,000		$	642,000

On January 1, 20X9, Plaza's inventory contained $34,000 of unrealized intercompany profits recorded by Square. Square's inventory on that date contained $15,000 of unrealized intercompany profits recorded on Plazas books. Both companies sold their ending 20X8 inventories to unrelated companies in 20X9. During 20X9, Square sold inventory costing $52,000 to Plaza for $77,000. Plaza held all inventory purchased from Square during 20X9 on December 31, 20X9. Also during 20X9, Plaza sold goods costing $58,200 to Square for $97,000. Square continues to hold $32,980 of its purchase from Plaza on December 31, 20X9. Assume Plaza uses the fully adjusted equity method. Required: a. Prepare all consolidation entries needed to complete a consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare a consolidation worksheet as of December 31, 20X9. (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.

A Record the basic consolidation entry. B Record the excess value (differential) reclassification entry. Record the entry to reverse last year's deferral. D Record the deferral of this year's unrealized profits on inventory transfers. PLAZA CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X9 Consolidation Entries Plaza Corp. Square Co. DR CR Consolidated Income Statement Sales Less: COGS 0 0 0 0 0 Less: Depreciation Expense Income from Square Company Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance $ 0 $ 0 $ 0 $ 0 $ 0 Net income Less: Dividends declared Ending Balance $ 0 $ 0 $ 0 $ 0 $ 0 Balance Sheet Cash and Receivable Inventory Land, Buildings, & Equipment (net) Investment in Square Company Investment in Square Company Goodwill Total Assets $ 0 $ 0 0 $ 0 $ 0 Accounts Payable Common Stock Retained Earnings NCI in NA of Square Company Total Liabilities & Equity $ 0 $ O 0 $ 0 $ 0