Prime Company holds $80$ percent of Suspect Company$$s stock, acquired on January $1,20$X$2,$ for $ $160,000.$ On the acquisition date, the fair value of the noncontrolling interest was $ $40,000.$ Suspect reported retained earnings of $ $50,000$ and had $$100,000$ of common stock outstanding. Prime uses the fully adjusted equity method in accounting for its investment in Suspect.

Trial balance data for the two companies on December $31,20$X$6,$ are as follows:

Item Prime Company Suspect Company

Debit Credit Debit Credit

Cash and Accounts Receivable $ $113,000$ $ $35,000$

Inventory $260,00090,000$

Land $80,00080,000$

Buildings and Equipment $500,000150,000$

Investment in Suspect Company $191,600$

Cost of Goods Sold $140,00060,000$

Depreciation and Amortization Expense $25,00015,000$

Other Expenses $15,0005,000$

Dividends Declared $30,0005,000$

Accumulated Depreciation $ $205,000$ $ $45,000$

Accounts Payable $60,00020,000$

Bonds Payable $200,00050,000$

Common Stock $300,000100,000$

Retained Earnings $322,00095,000$

Sales $240,000130,000$

Gain on Sale of Equipment $20,000$

Income from Suspect Company $7,600$

Total $ $1,354,600$ $ $1,354,600$ $ $440,000$ $ $440,000$

Additional Information

At the date of combination, the book values and fair values of all separately identifiable assets and liabilities of Suspect were the same. At December $31,20$X$6,$ the management of Prime reviewed the amount attributed to goodwill as a result of its purchase of Suspect stock and concluded an impairment loss of $ $18,000$ should be recognized in $20$X$6$ and shared proportionately between the controlling and noncontrolling shareholders.

On January $1,20$X$5,$ Suspect sold land that had cost $ $8,000$ to Prime for $ $18,000.$

On January $1,20$X$6,$ Prime sold to Suspect equipment that it had purchased for $ $75,000$ on January $1,20$X$1.$ The equipment has a total economic life of $15$ years and was sold to Suspect for $ $70,000.$ Both companies use straight$-$line depreciation.

There was $ $7,000$ of intercompany receivables and payables on December $31,20$X$6.$

Required:

Give all consolidation entries needed to prepare a consolidation worksheet for $20$X$6$