Please Answer Part B using the equity method. Part A is using the cost method.

On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $694,720, an amount $20,800 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: Set Company Consolidated Balances 896,000 196,500 119,200 405,400 1/1/14 retained earnings Net income from above Dividends declared 12/31/14 retained earnings to the balance sheet (50,700) (88,500) 265,000 1,212,900 Set Company's stockholders' equity is composed of common stock and retained earnings only. (a) Your answer is correct. Prepare the eliminating entries required for the preparation of a consolidated statements workpaper on December 31, 2014, assuming the use of the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places, eg. 5,125.) Account Titles and Explanation Debit Credit Dividend Income 45630 Dividends Declared - Subsidiary Company 45630 (To record dividend income) Common Stock - Subsidiary Company 552300 Retained Earnings - Subsidiary Company 196500 Difference between Implied and Book Value 23111 Investment in Subsidiary 694720 Noncontrolling Interest 77191 (To eliminate investment in subsidiary and create noncontrolling interest) Land 23111 Difference between Implied and Book Value 23111 (To eliminate excess of the book value of equity acquired.) Prepare the eliminating entries required for the preparation of a consolidated statements workpaper on December 31, 2014, assuming the use of the equity method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places, eg. 5,125.) Account Titles and Explanation Debit Credit Investment in Subsidiary (To record dividend income) Common Stock - Subsidiary Company Retained Earnings - Subsidiary Company Difference between Implied and Book Value Investment in Subsidiary Noncontrolling Interest (To eliminate investment in subsidiary and create noncontrolling interest) Land Difference between Implied and Book Value (To eliminate excess of the book value of equity acquired.)