Prime Corporation acquired 100 percent ownership of Steak Products Company on January 1, 20X1, for $255,000. On that date, Steak reported retained earnings of $72,000 and had $111,000 of common stock outstanding. Prime has used the equity-method in accounting for its investment in Steak. The trial balances for the two companies on December 31, 2005, appear below. Prime Steak Corporation Products Company Item Debit Credit Debit Credit Cash & Receivables $ 54,000 $ 76,000 Inventory 271,000 101,000 Land 91,000 91,000 Buildings & Equipment 511,000 161,000 Investment in Steak Products 270,200 Cost of Goods Sold 131,000 61,000 Depreciation Expense 36,000 26,000 Inventory Losses 26,000 13,800 Dividends Declared 41,000 21,000 Accumulated Depreciation $ 216,000 $127,000 Accounts Payable 71,000 31,000 Notes Payable 222,000 36,800 Common Stock 311,000 111,000 Retained Earnings 364,200 101,000 Sales 211,000 144,000 Income from Steak Products 36,000 $1,431,200 $1,431,200 $550,800 $550,800 Additional Information: 1. On the date of combination (five years ago), the fair value of Steak's depreciable assets was $72,000 more than the book value. Accumulated depreciation at that date was $10,000. The differential assigned to depreciable assets should be written off over the following 10-year period. 2. There was $21,000 of intercorporate receivables and payables at the end of 20X5. Complete the following Journal Entries: a. Record Prime Corp's share of Steak Products' 20x5 income. b. Record Prime Corp's share of Steak Products' 20x5 dividend. C. Record the amortization of the excess acquisition price. Complete the following Consolidation Entries: a. Record the basic consolidation entry. b. Record the amortized excess value reclassification entry. C. Record the excess value (differential) reclassification entry. d. Record the entry to eliminate the intercompany accounts. e. Record the optional accumulated depreciation consolidation entry. Prime Corporation acquired 100 percent ownership of Steak Products Company on January 1, 20X1, for $255,000. On that date, Steak reported retained earnings of $72,000 and had $111,000 of common stock outstanding. Prime has used the equity-method in accounting for its investment in Steak. The trial balances for the two companies on December 31, 2005, appear below. Prime Steak Corporation Products Company Item Debit Credit Debit Credit Cash & Receivables $ 54,000 $ 76,000 Inventory 271,000 101,000 Land 91,000 91,000 Buildings & Equipment 511,000 161,000 Investment in Steak Products 270,200 Cost of Goods Sold 131,000 61,000 Depreciation Expense 36,000 26,000 Inventory Losses 26,000 13,800 Dividends Declared 41,000 21,000 Accumulated Depreciation $ 216,000 $127,000 Accounts Payable 71,000 31,000 Notes Payable 222,000 36,800 Common Stock 311,000 111,000 Retained Earnings 364,200 101,000 Sales 211,000 144,000 Income from Steak Products 36,000 $1,431,200 $1,431,200 $550,800 $550,800 Additional Information: 1. On the date of combination (five years ago), the fair value of Steak's depreciable assets was $72,000 more than the book value. Accumulated depreciation at that date was $10,000. The differential assigned to depreciable assets should be written off over the following 10-year period. 2. There was $21,000 of intercorporate receivables and payables at the end of 20X5. Complete the following Journal Entries: a. Record Prime Corp's share of Steak Products' 20x5 income. b. Record Prime Corp's share of Steak Products' 20x5 dividend. C. Record the amortization of the excess acquisition price. Complete the following Consolidation Entries: a. Record the basic consolidation entry. b. Record the amortized excess value reclassification entry. C. Record the excess value (differential) reclassification entry. d. Record the entry to eliminate the intercompany accounts. e. Record the optional accumulated depreciation consolidation entry