Prime Company holds 90 percent of Suspect Companys stock, acquired on January 1, 20X2, for $247,500. On the date of acquisition, Suspect reported retained earnings of $65,000 and $125,000 of common stock outstanding, and the fair value of the noncontrolling interest was $27,500. Prime uses the fully adjusted equity method in accounting for its investment in Suspect. Trial balance data for the two companies on December 31, 20X7, are as follows:

	Prime Company									Suspect Company
Item	Debit				Credit					Debit				Credit
Cash and Accounts Receivable		$	143,000								$	58,000
Inventory			245,000									98,000
Land			105,000									90,000
Buildings and Equipment			520,000									165,000
Investment in Suspect Co.			295,050
Cost of Goods Sold			165,000									88,000
Depreciation and Amortization Expense			26,000									19,000
Other Expenses			23,000									13,000
Dividends Declared			68,000									37,500
Accumulated Depreciation						$	308,850								$	36,500
Accounts Payable							52,000									22,000
Bonds Payable							150,000									60,000
Common Stock							340,000									125,000
Retained Earnings							411,800									155,000
Sales							280,000									170,000
Income from Suspect Co.							47,400
Total		$	1,590,050			$	1,590,050				$	568,500			$	568,500

Additional Information

1. At the date of combination, the book values and fair values of Suspects 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 Suspect stock and recognized an impairment loss of $20,000. No further impairment occurred in 20X7.
2. On January 1, 20X5, Suspect sold land for $16,000 that had cost $5,000 to Prime.
3. On January 1, 20X6, Prime sold to Suspect equipment that it had purchased for $75,600 on January 1, 20X1. The equipment has a total 14-year economic life and was sold to Suspect for $70,200. Both companies use straight-line depreciation.
4. Intercompany receivables and payables total $7,000 on December 31, 20X7.

Required: a. Prepare a reconciliation between the balance in Primes Investment in Suspect Co. account reported on December 31, 20X7, and Suspects 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.)