Prime Company holds 80 percent of Suspect Companys stock, acquired on January 1, 20X2, for $182,000. On the acquisition date, the fair value of the noncontrolling interest was $45,500. 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, 20X6, are as follows:

	Prime Company									Suspect Company
Item	Debit				Credit					Debit				Credit
Cash & Accounts Receivable		$	116,000								$	38,000
Inventory			277,000									90,000
Land			65,000									60,000
Buildings & Equipment			560,000									130,000
Investment in Suspect Co.			191,220
Cost of Goods Sold			168,200									78,200
Depreciation and Amortization Expense			28,000									13,000
Other Expenses			15,000									5,000
Dividends Declared			30,000									5,000
Accumulated Depreciation						$	229,600								$	39,000
Accounts Payable							60,000									24,000
Bonds Payable							170,000									45,000
Common Stock							300,000									100,000
Retained Earnings							356,560									41,200
Sales							290,000									170,000
Gain on Sale of Equipment							16,000
Income from Suspect Co.							28,260
Total		$	1,450,420			$	1,450,420				$	419,200			$	419,200

Additional Information

1. 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, 20X6, 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 $20,475 should be recognized in 20X6 and shared proportionately between the controlling and noncontrolling shareholders.
2. On January 1, 20X5, Suspect sold land that had cost $8,000 to Prime for $18,000.
3. On January 1, 20X6, Prime sold to Suspect 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 Suspect for $71,000. 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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

b. Prepare a three-part worksheet for 20X6.

c. Prepare a consolidated balance sheet, income statement, and retained earnings statement for 20X6.