Prime Corporation acquired 80 percent of Steak Companys voting shares on January 1, 20X4, for $280,000 in cash and marketable securities. At that date, the noncontrolling interest had a fair value of $70,000 and Steak reported net assets of $300,000. Assume Prime uses the fully adjusted equity method. Trial balances for the two companies on December 31, 20X7, are as follows:

Item	Prime Corporation	Steak Company
Debit	Credit	Debit	Credit
Cash	$ 130,300		$ 10,000
Accounts Receivable	80,000		70,000
Inventory	170,000		110,000
Buildings and Equipment	600,000		400,000
Investment in Steak Company	293,000
Cost of Goods Sold	416,000		202,000
Depreciation Expense	30,000		20,000
Other Expenses	24,000		18,000
Dividends Declared	50,000		25,000
Accumulated Depreciation		$ 310,000		$ 120,000
Accounts Payable		100,000		15,200
Bonds Payable		300,000		100,000
Bond Premium				4,800
Common Stock		200,000		100,000
Additional Paid-in Capital				20,000
Retained Earnings		337,500		215,000
Sales		500,000		250,000
Other Income		20,400		30,000
Income from Steak Company		25,400
Total	$ 1,793,300	$ 1,793,300	$ 855,000	$ 855,000

Additional Information

1. The full amount of the differential at acquisition was assigned to buildings and equipment with a remaining 10-year economic life.
2. Prime and Steak regularly purchase inventory from each other. During 20X6, Steak Company sold inventory costing $40,000 to Prime Corporation for $60,000, and Prime resold 60 percent of the inventory in 20X6 and 40 percent in 20X7. Also in 20X6, Prime sold inventory costing $20,000 to Steak for $26,000. Steak resold two-thirds of the inventory in 20X6 and one-third in 20X7.
3. During 20X7, Steak sold inventory costing $30,000 to Prime for $45,000, and Prime sold items purchased for $9,000 to Steak for $12,000. Before the end of the year, Prime resold one-third of the inventory it purchased from Steak in 20X7. Steak continues to hold all the units purchased from Prime during 20X7.
4. Steak owes Prime $10,000 on account on December 31, 20X7.
5. Assume that both companies use straight-line depreciation and that no property, plant, and equipment has been purchased since the acquisition.

Required:

Prepare the 20X7 journal entries recorded on Primes books related to its investment in Steak if Prime uses the equity method.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

a. Record Prime Corporation's 80% share of Steak Company's 20X7 income.

b. Record Prime Corporation's 80% share of Steak Company's 20X7 dividend.

c. Record the amortization of the excess acquisition price.

d. Record the reversal of the deferred gross profit from downstream sales in 20X6.

e. Record the elimination of the deferred gross profit from downstream sales in 20X7.

f. Record the reversal of the deferred gross profit from upstream sales in 20X6.

g. Record the elimination of the deferred gross profit from upstream sales in 20X7.

Please show all work.