Prime Corporation acquired 100 percent ownership of Steak Products Company on January 1, 20X1, for $250,000. On that date, Steak reported retained earnings of $70,000 and had $110,000 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, 20X5, appear below.

	Prime Corporation									Steak Products Company
Item	Debit				Credit					Debit				Credit
Cash & Receivables		$	53,000								$	75,000
Inventory			270,000									100,000
Land			90,000									90,000
Buildings & Equipment			510,000									160,000
Investment in Steak Products			267,000
Cost of Goods Sold			130,000									60,000
Depreciation Expense			35,000									25,000
Inventory Losses			25,000									13,000
Dividends Declared			40,000									20,000
Accumulated Depreciation						$	215,000								$	125,000
Accounts Payable							70,000									30,000
Notes Payable							220,000									38,000
Common Stock							310,000									110,000
Retained Earnings							360,000									100,000
Sales							210,000									140,000
Income from Steak Products							35,000
		$	1,420,000			$	1,420,000				$	543,000			$	543,000

Additional Information:

1. On the date of combination (five years ago), the fair value of Steaks depreciable assets was $70,000 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 $20,000 of intercorporate receivables and payables at the end of 20X5.

Prepare all consolidating entries needed to prepare consolidated statements for 20X5.

• Record the basic consolidation entry.
• Record the amortized excess value reclassification entry.
• Record the excess value (differential) reclassification entry.
• Record the entry to eliminate the intercompany accounts.
• Record the optional accumulated depreciation consolidation entry.