Pony Corporation acqulred all of Stallion Company's common shares on January 1, 20X5, for $180,000. On that date, the book value of the net assets reported by Stallion was $150,000. The entire differential was assigned to depreclable assets with a six-year remalning economic life from January 1, 20X5. The adjusted trial balances for the two companies on December 31, 20X5, are as follows Pony Corporation Stallion Comparn Debit Item Cash Accounts Receivable Inventory Depreciable Assets (net) Investment in Stallion Company Depreciation Expense Other Expenses Dividends Declared Accounts Payable Notes Payable Common Stock Retained Earnings Sales Income from Stallion Company Debit 15,e6e 38,8e8 78,8e8 325,8e8 195,888 25,980 185,8e8 48,888 Credit Credit $ 5,88e 48,888 68,888 225,988 15,800 75,888 18,800 $ 5e,ee 18e,888 288,8e8 238,8e0 288,8e8 $ 4e,8ee 128,8e8 188,8e8 58,8e8 12e,880 25,808_ $885,988 85,e8 $43e,808 $43e,ee Pony uses the equity method In accounting for Its Investment In Stallion. Stallilon declared and pald dividends on December 31, 20X5. Required a. Prepare the consolidation entries needed as of December 31, 20X5, to complete a consolidation worksheet. (If no entry Is requlred for a transaction/event, select "No Journal entry required" In the first account field.) view transaction list Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits Entry Accounts Debit Credit Record entry Clear entry entries b. Prepare a three-part consolidation worksheet as of December 31, 20X5. (Values In the first two columns (the "parent and subsldiary" balances) that are to be deducted should be Indicated with a minus sign, whlle all values In the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entrles are required, combine all deblt entrles Into one amount and enter this amount In the deblt column of the worksheet. SImllerly, comblne all credlt entrles Into one amount and enter this amount In the credit column of the worksheet.) PONY CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20x5 Consolidation Entries CR Pony Corp. Stallion Co. DR Consolidated Income Statement Sales Less: Depreciation expense Less: Other expenses Income from Stallion Co. Net income Statement of retained earnings Beginning balance Net income Less: Dividends declared Ending balance Assets Cash Accounts receivable Inventory Depreciable assets (net) Investment in Stallion Co. Total assets Liabilities & Stockholder's Equity Accounts payable Notes payable Common stock Retained earnings Total Liabilities & Equity