Please explain your reasoning!

Pretzel Corporation acquired 100 percent of Stick Company's outstanding shares on January 1, 20X7. Balance sheet data for the two companies immediately after the purchase follow: Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Stick Company Investment in Stick Company Bonds Total Assets Pretzel Corporation $ 83,000 106,000 104,000 405,000 (157,000) 314,000 51,000 $ 906,000 Stick Company $ 15,000 57,000 100,000 299,000 (82,000) $ 389,000 $ 51,000 183,000 284,000 Accounts Payable Bonds Payable Common Stock Capital in Excess of Par Retained Earnings Total Liabilities & Equities $ 30,000 112,000 151,000 141,000 (45,000) $ 389,000 388,000 $ 906,000 As indicated in the parent company balance sheet, Pretzel purchased $51,000 of Stick's bonds from the subsidiary at par value immediately after it acquired the stock. An analysis of intercompany receivables and payables also indicates that the subsidiary owes the parent $13,000. On the date of combination, the book values and fair values of Stick's assets and liabilities were the same. Required: a. Prepare all consolidation entries needed to prepare a consolidated balance sheet for January 1, 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries Record the optional accumulated depreciation consolidation entry