Prime Company holds 65 percent of Lane Companys stock, acquired on January 1, 20X2, for $182,000. On the date of acquisition, Lane reported retained earnings of $55,000 and $160,000 of common stock outstanding, and the fair value of the noncontrolling interest was $98,000. Prime uses the fully adjusted equity method in accounting for its investment in Lane.

Trial balance data for the two companies on December 31, 20X7, are as follows:

	Prime Company							Lane Company
Item	Debit			Credit				Debit			Credit
Cash and Accounts Receivable	$	158,000						$	68,000
Inventory		236,000							105,000
Land		178,000							92,000
Buildings and Equipment		550,000							168,000
Investment in Lane Company Stock		211,050
Cost of Goods Sold		155,000							70,000
Depreciation and Amortization		28,000							14,000
Other Expenses		19,000							15,000
Dividends Declared		54,000							48,000
Accumulated Depreciation				$	307,900						$	67,000
Accounts Payable					70,000							20,000
Bonds Payable					220,000							40,000
Common Stock					260,000							160,000
Retained Earnings					408,100							145,000
Sales					290,000							148,000
Income from Subsidiary					33,050
Total	$	1,589,050		$	1,589,050			$	580,000		$	580,000

Additional Information

1.	At the date of combination, the book values and fair values of Lanes separately identifiable assets and liabilities were equal. The full amount of the increased value of the entity was attributed to goodwill. At December 31, 20X6, the management of Prime reviewed the amount attributed to goodwill as a result of its purchase of Lane stock and recognized an impairment loss of $14,000. No further impairment occurred in 20X7.
2.	On January 1, 20X5, Lane sold land for $8,000 that had cost $20,000 to Prime.
3.	On January 1, 20X6, Prime sold to Lane equipment that it had purchased for $108,000 on January 1, 20X1. The equipment has a total 18-year economic life and was sold to Lane for $93,600. Both companies use straight-line depreciation.
4.	Intercompany receivables and payables total $9,000 on December 31, 20X7.

Required:

a.	Prepare a reconciliation between the balance in Primes Investment in Lane Company Stock account reported on December 31, 20X7, and Lanes book value. (Enter the proportion of stock held as a fraction (i.e., 0.75), not in percent.)

b-1.	Prepare all worksheet consolidation entries needed as of December 31, 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b-2.

Complete a three-part consolidation worksheet for 20X7. (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.)