Powder Company spent $$240,000$ to acquire all of Sawmill Corporation's stock on January $1,20$X$2.$ On December $31,20$X$4,$ the trial balances of the two companies were as follows:

Item Powder Company Sawmill Corporation

Debit Credit Debit Credit

Cash $ $74,000$ $ $42,000$

Accounts Receivable $130,00053,000$

Land $60,00050,000$

Buildings and Equipment $500,000350,000$

Investment in Sawmill Corporation $268,000$

Cost of Services Provided $470,000130,000$

Depreciation Expense $35,00018,000$

Other Expenses $57,00060,000$

Dividends Declared $30,00012,000$

Accumulated Depreciation $ $265,000$ $ $93,000$

Accounts Payable $71,00017,000$

Taxes Payable $58,00060,000$

Notes Payable $100,00085,000$

Common Stock $200,000100,000$

Retained Earnings $292,000120,000$

Service Revenue $610,000240,000$

Income from Sawmill Corporation $28,000$

$ $1,624,000$ $ $1,624,000$ $ $715,000$ $ $715,000$

Sawmill Corporation reported retained earnings of $$100,000$ at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of $10$ years from the date of acquisition. Sawmill's accumulated depreciation on the acquisition date was $$25,000.$ At December $31,20$X$4,$ Sawmill owed Powder $$2,500.$

Required:

Prepare the following journal entries recorded by Powder with regard to its investment in Sawmill during $20$X$4.$

Prepare all consolidation entries required on December $31,20$X$4,$ to prepare consolidated financial statements.

Prepare a three$-$part consolidation worksheet as of December $31,20$X$4.$