Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $114,800. At that date, the noncontrolling interest had a fair value of $49,200 and Soda reported $70,000 of common stock outstanding and retained earnings of $25,000. The differential is assigned to buildings and equipment, which had a fair value $22,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $47,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows:

	Pop Corporation								Soda Company
Item		Debit			Credit				Debit				Credit
Cash & Accounts Receivable		$	17,400						$	23,600
Inventory			167,000							37,000
Land			82,000							42,000
Buildings & Equipment			360,000							262,000
Investment in Soda Company			117,100
Cost of Goods Sold			188,000							81,800
Depreciation Expense			25,000							20,000
Interest Expense			18,000							7,200
Dividends Declared			32,000							17,000
Accumulated Depreciation					$	142,000							$	90,000
Accounts Payable						94,400								37,000
Bonds Payable						234,180								90,000
Bond Premium														1,600
Common Stock						122,000								70,000
Retained Earnings						129,900								62,000
Sales						262,000								140,000
Other Income						11,600
Income from Soda Company						10,420
		$	1,006,500		$	1,006,500			$	490,600			$	490,600

On December 31, 20X2, Soda purchased inventory for $30,000 and sold it to Pop for $50,000. Pop resold $29,000 of the inventory (i.e., $29,000 of the $50,000 acquired from Soda) during 20X3 and had the remaining balance in inventory at December 31, 20X3. During 20X3, Soda sold inventory purchased for $54,000 to Pop for $90,000, and Pop resold all but $26,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $16,000 to Soda for $32,000. Soda sold all but $8,000 of the inventory prior to December 31, 20X3. Assume Pop uses the fully adjusted equity method, that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition.

Required: a. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3, for Pop and Soda.

Record the basic consolidation entry.

Record the amortized excess value reclassification entry.

Record the excess value (differential) reclassification entry.

Record the optional accumulated depreciation consolidation entry.

Record the entry to reverse last year's deferral.

Record the deferral of the unrealized profit on inventory transfers from 20X2.

Record the deferral of this year's unrealized profits on inventory transfers.