Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 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:

Pop Corporation Soda Company

Item Debit Credit Debit Credit

Cash & Accounts Receivable $ 15,400 $ 21,600

Inventory 165,000 35,000

Land 80,000 40,000

Buildings & Equipment 340,000 260,000

Investment in Soda Company 109,600

Cost of Goods Sold 186,000 79,800

Depreciation Expense 20,000 15,000

Interest Expense 16,000 5,200

Dividends Declared 30,000 15,000

Accumulated Depreciation $ 140,000 $ 80,000

Accounts Payable 92,400 35,000

Bonds Payable 200,000 100,000

Bond Premium 1,600

Common Stock 120,000 70,000

Retained Earnings 127,900 60,000

Sales 260,000 125,000

Other Income 13,600

Income from Soda Company 8,100

Totals: $ 962,000 $ 962,000 $ 471,600 $ 471,600

b. Prepare a three-part consolidation worksheet for 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.)

On December 31, 20X2, Soda purchased inventory for $32,000 and sold it to Pop for $48,000. Pop resold $27,000 of the inventory (i.e., $27,000 of the $48,000 acquired from Soda) during 20X3 and had the remaining balance in inventory at December 31, 20X3. During 20X3, Soda sold inventory purchased for $60,000 to Pop for $90,000, and Pop resold all but $24,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $15,000 to Soda for $30,000. Soda sold all but $7,600 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.)