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, 20X5, appear below.

	Prime Corporation									Steak 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 Steaks 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.

Prepare Journal Entries for:

1. Record Prime Corps share of Steak Products 20X5 income.

2. Record Prime Corps share of Steak Products 20X5 dividend.

3. Record the amortization of the excess acquisition price.

Record Consolidation Worksheet Entries:

1. Record the basic consolidation entry.
2. Record the amortized excess value reclassification entry.
3. Record the excess value (differential) reclassification entry.
4. Record the entry to eliminate the intercompany accounts.
5. Record the optional accumulated depreciation consolidation entry.