Prime Company holds 80 percent of Suspect Company's stock, acquired on January 1, 20X2, for $174,000. On the acquisition date, the fair value of the noncontrolling interest was $43,500. 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 31,206, are as follows: 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 $19,575 should be recognized in 206 and shared proportionately between the controlling and noncontrolling shareholders. 2. On January 1, 20X5, Suspect sold land that had cost $9,000 to Prime for $20,250. total economic life of 15 years and was sold to Suspect for $75,500. Both companies use straight-line depreciation. 4. There was $8,000 of intercompany receivables and payables on December 31,206. Required: a. Give all consolidation entries needed to prepare a consolidation worksheet for 206. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. B Record the amortized excess value reclassification entry. C Record the excess value (differential) reclassification entry. D Record the entry to eliminate the intercompany receivable/payable. E Record the entry to eliminate the gain on the sale of land. F Record the entry to eliminate the gain on the equipment and to correct the asset's basis. G Record the entry to adjust Accumulated Depreciation. Note : = journal entry has been entered b. Prepare a three-part worksheet for 206. Note: 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. Prepare a consolidated balance sheet, income statement, and retained earnings statement for 206. Note: Be sure to list the assets and liabilities in order of their liquidity. Amount to be deducted should be indicated by a minus sign. Prime Company holds 80 percent of Suspect Company's stock, acquired on January 1, 20X2, for $174,000. On the acquisition date, the fair value of the noncontrolling interest was $43,500. 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 31,206, are as follows: 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 $19,575 should be recognized in 206 and shared proportionately between the controlling and noncontrolling shareholders. 2. On January 1, 20X5, Suspect sold land that had cost $9,000 to Prime for $20,250. total economic life of 15 years and was sold to Suspect for $75,500. Both companies use straight-line depreciation. 4. There was $8,000 of intercompany receivables and payables on December 31,206. Required: a. Give all consolidation entries needed to prepare a consolidation worksheet for 206. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. B Record the amortized excess value reclassification entry. C Record the excess value (differential) reclassification entry. D Record the entry to eliminate the intercompany receivable/payable. E Record the entry to eliminate the gain on the sale of land. F Record the entry to eliminate the gain on the equipment and to correct the asset's basis. G Record the entry to adjust Accumulated Depreciation. Note : = journal entry has been entered b. Prepare a three-part worksheet for 206. Note: 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. Prepare a consolidated balance sheet, income statement, and retained earnings statement for 206. Note: Be sure to list the assets and liabilities in order of their liquidity. Amount to be deducted should be indicated by a minus sign