Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $109,200. At that date, the noncontrolling interest had a fair value of $46,800 and Soda reported $71,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 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: $ Soda Company Debit Credit $ 26,600 40,000 45,000 265,000 Item Cash & Accounts Receivable Inventory Land Buildings & Equipment Investment in Soda Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Bond Premium Common Stock Retained Earnings Sales Other Income Income from Soda Company Pop Corporation Debit Credit 20,400 170,000 85,000 390,000 113,920 191,000 25,000 21,000 35,000 $ 145,000 97,400 260,400 84,800 20,000 7,200 20,000 $ 90,000 40,000 100,000 2,600 71,000 65,000 140,000 125,000 132,900 265,000 14,600 11,020 $1,051,320 $1,051,320 $508,600 $508,600 On December 31, 20X2, Soda purchased inventory for $35,000 and sold it to Pop for $50,000. Pop resold $30,000 of the inventory (i.e., $30,000 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 $56,000 to Pop for $80,000, and Pop resold all but $23,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $15,000 to Soda for $30,000. Soda sold all but $7,500 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries B C D E F G Record the basic consolidation entry. Note: Enter debits before credits. Entry Accounts Debit Credit Consolidation Worksheet Entries B C D E F G Record the amortized excess value reclassification entry. Note: Enter debits before credits. Entry Accounts Debit Credit - 2 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries