Powder Company spent $240,000 to acquire all of Sawmill Corporation's stock on January 1, 20X2. On December 31, 20X4, the trial balances of the two companies were as follows:

Sawmill 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. Assume Sawmill's accumulated depreciation on the acquisition date was $25,000.

Required: a. Prepare the appropriate consolidation entry or entries needed to prepare a consolidated balance sheet as of December 31, 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

A) Record the basic consolidation entry.

B) Record the excess value (differential) reclassification entry.

C) Record the optional accumulated depreciation consolidation entry.

D) Prepare a consolidated balance sheet worksheet as of December 31, 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.)

Cash Accounts Receivable Land Buildings & Equipment Less: Accumulated Depreciation Investment in Sawmill Corporation Powder Company 30,000 100,000 60,000 500,000 (230,000) 252,000 $ 712,000 Sawmill Corporation $ 20,000 40,000 50,000 350,000 (75,000) $385,000 Accounts Payable Taxes Payable Notes Payable Common Stock Retained Earnings $ 80,000 40,000 100,000 200,000 292,000 $ 712,000 $ 10,000 70,000 85,000 100,000 120,000 $385,000 POWDER COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet December 31, 20X3 Consolidation Entries Powder Co. Sawmill Corp. DR CR Consolidated Assets Cash Accounts receivable Land Buildings and equipment Less: Accumulated depreciation Investment in Sawmill Corporation Total Assets Liabilities & Stockholders' Equity Accounts payable Taxes payable Notes payable Common stock Retained earnings Total Liabilities & Equity Cash Accounts Receivable Land Buildings & Equipment Less: Accumulated Depreciation Investment in Sawmill Corporation Powder Company 30,000 100,000 60,000 500,000 (230,000) 252,000 $ 712,000 Sawmill Corporation $ 20,000 40,000 50,000 350,000 (75,000) $385,000 Accounts Payable Taxes Payable Notes Payable Common Stock Retained Earnings $ 80,000 40,000 100,000 200,000 292,000 $ 712,000 $ 10,000 70,000 85,000 100,000 120,000 $385,000 POWDER COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet December 31, 20X3 Consolidation Entries Powder Co. Sawmill Corp. DR CR Consolidated Assets Cash Accounts receivable Land Buildings and equipment Less: Accumulated depreciation Investment in Sawmill Corporation Total Assets Liabilities & Stockholders' Equity Accounts payable Taxes payable Notes payable Common stock Retained earnings Total Liabilities & Equity