Prime Corporation acquired 100 percent ownership of Steak Products Company on January 1, 20x1, for $200,000. On that date, Steak reported retained earnings of $50,000 and had $100,000 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. Item Cash & Receivables Inventory Land Buildings & Equipment Investment in Steak Products Cost of Goods Sold Depreciation Expense Inventory losses Dividends Declared Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Income from Steak Products Prime Corporation Debit Credit $ 43, eee 260,000 80,000 500,000 235,898 120, 808 25,000 15,000 30.ee $ 205, 68,000 200,00 388,888 318,00 200,000 25.ee $1,388.ege $1,308,00 Steak Products Company Debit Credit $ 65,000 90,000 se, eee 150,000 58,880 15, een 5,800 1e, eee $185,000 28,800 Se, 800 100,000 98,00 188,890 $455,00 $465, Additional Information: 1. On the date of combination (five years ago), the fair value of Steak's depreciable assets was $50,000 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 $10,000 of Intercorporate receivables and payables at the end of 20X5. Required: 1. On the date of combination (five years ago), the fair value of Steak's depreciable assets was $50,000 more than the book value Accumulated depreciation at that date was $10,000. The differential assigned to depreciable assets should be written off overth following 10 year period. 2. There was $10,000 of intercorporate receivables and payables at the end of 20x5. Required: a. Prepare all journal entries that Prime recorded during 20x5 related to its investment in Steak. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld.) View transaction list Journal entry worksheet Record Prime Corp's share of Steak Products' 20x5 dividend. Note: Enter debits before credits Event General Journal Debit Credit 2 Journal entry worksheet Record the amortization of the excess acquisition price. Note. Enter debits before credits. Event General Journal Debit Credit 3 b. Prepare all consolidating entries needed to prepare consolidated statements for 20X5. (It no entry Is transaction/event, select "No Journal entry required" In the first account field.) view transaction list Consolidation Worksheet Entries Record the amortized excess value reclassification entry. Note: Enter debits before credits Event Accounts Debit Credit Record entry Clear entry view consolidation entries