Police Corporation acquired 100 percent of Station Corporation's voting shares on January 1, 20X3, at underlying book value. At that date, the book values and fair values of Station's assets and liabilities were equal. Police uses the equity method in accounting for its investment in Station. Adjusted trial balances for Police and Station on December 31, 20X4, are as follows:

Police Corporation Station Corporation Item Debit Credit

Current Assets $ 211,000 $ 166,000

Depreciable Assets (net) 315,000 228,000

Investment in Station Corporation 235,000

Depreciation Expense 22,000 12,000

Other Expenses 161,000 90,000

Dividends Declared 54,000 22,000

Current Liabilities $ 61,000 $ 41,000

Long-Term Debt 98,000 118,000

Common Stock 193,000 89,000

Retained Earnings 381,000 126,000

Sales 223,000 144,000

Income from Station Corporation 42,000 $ 998,000 $ 998,000 $ 518,000 $ 518,000 Required:

a. Prepare the basic consolidation entry required on December 31, 20X4, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare a three-part consolidation worksheet as of December 31, 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.)