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, 20X3, are as follows:

	Police Corporation								Station Corporation
Item	Debit				Credit				Debit				Credit
Current Assets	$	146,000							$	110,000
Depreciable Assets (net)		329,000								228,000
Investment in Station Corporation		164,000
Depreciation Expense		23,000								13,000
Other Expenses		104,000								72,000
Dividends Declared		45,000								34,000
Current Liabilities					$	49,000							$	39,000
Long-Term Debt						89,000								135,000
Common Stock						191,000								97,000
Retained Earnings						221,000								47,000
Sales						207,000								139,000
Income from Station Corporation						54,000
	$	811,000			$	811,000			$	457,000			$	457,000

Required: a. Prepare the basic consolidation entry required on December 31, 20X3, 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, 20X3. (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.)