Prime Company holds 80 percent of Lane Companys stock, acquired on January 1, 20X2, for $174,000. On the acquisition date, the fair value of the noncontrolling interest was $43,500. Lane 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 Lane.

Trial balance data for the two companies on December 31, 20X6, are as follows:

	Prime Company							Lane Company
Item	Debit			Credit				Debit			Credit
Cash & Accounts Receivable	$	111,000						$	33,000
Inventory		251,000							91,000
Land		75,000							60,000
Buildings & Equipment		500,000							140,000
Investment in Lane Company Stock		207,640
Cost of Goods Sold		133,400							82,800
Depreciation & Amortization		25,000							14,000
Other Expenses		13,000							5,000
Dividends Declared		30,000							5,000
Accumulated Depreciation				$	205,000						$	42,000
Accounts Payable					57,000							16,000
Bonds Payable					160,000							30,000
Common Stock					300,000							100,000
Retained Earnings					345,640							62,800
Sales					230,000							180,000
Gain on Sale of Equipment					15,000
Income from Subsidiary					33,400
Total	$	1,346,040		$	1,346,040			$	430,800		$	430,800

Additional Information

1.	At the date of combination, the book values and fair values of all separately identifiable assets and liabilities of Lane were the same. At December 31, 20X6, the management of Prime reviewed the amount attributed to goodwill as a result of its purchase of Lane stock and concluded an impairment loss of $19,575 should be recognized in 20X6 and shared proportionately between the controlling and noncontrolling shareholders.
2.	On January 1, 20X5, Lane sold land that had cost $6,000 to Prime for $13,500.
3.	On January 1, 20X6, Prime sold to Lane equipment that it had purchased for $82,500 on January 1, 20X1. The equipment has a total economic life of 15 years and was sold to Lane for $70,000. Both companies use straight-line depreciation.
4.	There was $4,000 of intercompany receivables and payables on December 31, 20X6.

Required:

a.	Give all consolidation entries needed to prepare a consolidation worksheet for 20X6