Prince Corporation holds 75 percent of the common stock of Sword Distributors Inc., purchased on December 31 , 201, for $2,160,000. At the date of acquisition, Sword reported common stock with a par value of $920,000, additional paid-In capital of $1,270,000, and retained earnings of $530,000. The falr value of the noncontrolling interest at acquisition was $720,000. The differentlal at acquisition was attributable to the following items: During 202, Prince sold a plot of land that it had purchased several years before to Sword at a gain of $22,400; Sword continues to hold the land. In 206, Prince and Sword entered Into a five-year contract under which Prince provides management consulting services to Sword on a continuing basis; Sword pays Prince a fixed fee of $82,000 per year for these services. At December 31 , 20X8, Sword owed Prince $20,500 as the final 208 quarterly payment under the contract. On January 2, 20X8, Prince paid $240,000 to Sword to purchase equipment that Sword was then carrying at $280,000. Sword had purchased that equipment on December 27,202, for $420,000. The equipment Is expected to have a total 15 -year life and no salvage value. The amount of the differentlal assigned to goodwill has not been Impalred. At December 31,208, trial balances for Prince and Sword appeared as follows: As of December 31, 208, Sword had declared but not yet pald its fourth-quarter dividend of $5,000. Both companies use stralght-line depreciation and amortization. Prince uses the fully adjusted equity method to account for its investment in Sword. Required: a. Compute the amount of the differentlal as of January 1,208. b. Verify the balance in Prince's Investment in Sword Distributors account as of December 31, 208. C. Present all consolidation entries that would appear in a three-part consolidation worksheet as of December 31 , 20X8. (If no entry Is equlred for a transaction/event, select "No journal entry required" In the first account fleld. Round your answers to nearest whole Hollar amount.) Consolidation Worksheet Entries Nole; cillei debils velule cievils. C. Present all consolidation entries that would appear in a three-part consolidation worksheet as of December 31 , 20X8. (If no entry is equired for a transaction/event, select "No journal entry requlred" In the first account fleid. Round your answers to nearest whole tollar amount.) Consolidation Worksheet Entries Record the excess value (differential) reclassification entry. Note: Enter debits before credits. c. Present all consolidation entrles that would appear In a three-part consolidation worksheet as of December 31 , 20X8. (If no entry Is requlred for a transaction/event, select "No journal entry requlred" In the first account fleld. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries A D (E) F (G) H Record the entry to eliminate the intercompany service revenue. Note: Enter debits before credits. c. Present all consolidation entrles that would appear In a three-part consolidation worksheet as of December 31,208. (If no entry Is requlred for a transaction/event, select "No Journal entry requlred" In the first account fleid. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries Record the entry to eliminate the intercompany receivables/payables. Note: Enter debits before credits. c. Present all consolidation entrles that would appear In a three-part consolidation worksheet as of December 31 , 208. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account fleid. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries A B C D G H Record the entry to eliminate the intercompany dividend owed. Note: Enter debits before credits. c. Present all consolidation entrles that would appear In a three-part consolidation worksheet as of December 31 , 20X8. (If no entry is requlred for a transaction/event, select "No journal entry required" In the first account fleid. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries A B C D E F G H Record the entry to eliminate the gain on the sale of land. Note: Enter debits before credits. c. Present all consolidation entrles that would appear in a three-part consolidation worksheet as of December 31 , 20X8. (If no entry is required for a transaction/event, select "No journal entry requlred" In the first account fleld. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries Record the entry to eliminate the gain on equipment and to correct the asset's basis. Note: Enter debits before credits. c. Present all consolidation entrles that would appear In a three-part consolidation worksheet as of December 31 , 20X8. (If no entry Is requlred for a transaction/event, select "No journal entry required" In the first account fleld. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries d. Prepare and complete a three-part worksheet for the preparation of consolidated financlal statements for 208. (Values in the first two columns (the "parent" and "subsidlary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly. combine all credit entrles into one amount and enter this amount in the credit column of the worksheet.) Prince Corporation holds 75 percent of the common stock of Sword Distributors Inc., purchased on December 31 , 201, for $2,160,000. At the date of acquisition, Sword reported common stock with a par value of $920,000, additional paid-In capital of $1,270,000, and retained earnings of $530,000. The falr value of the noncontrolling interest at acquisition was $720,000. The differentlal at acquisition was attributable to the following items: During 202, Prince sold a plot of land that it had purchased several years before to Sword at a gain of $22,400; Sword continues to hold the land. In 206, Prince and Sword entered Into a five-year contract under which Prince provides management consulting services to Sword on a continuing basis; Sword pays Prince a fixed fee of $82,000 per year for these services. At December 31 , 20X8, Sword owed Prince $20,500 as the final 208 quarterly payment under the contract. On January 2, 20X8, Prince paid $240,000 to Sword to purchase equipment that Sword was then carrying at $280,000. Sword had purchased that equipment on December 27,202, for $420,000. The equipment Is expected to have a total 15 -year life and no salvage value. The amount of the differentlal assigned to goodwill has not been Impalred. At December 31,208, trial balances for Prince and Sword appeared as follows: As of December 31, 208, Sword had declared but not yet pald its fourth-quarter dividend of $5,000. Both companies use stralght-line depreciation and amortization. Prince uses the fully adjusted equity method to account for its investment in Sword. Required: a. Compute the amount of the differentlal as of January 1,208. b. Verify the balance in Prince's Investment in Sword Distributors account as of December 31, 208. C. Present all consolidation entries that would appear in a three-part consolidation worksheet as of December 31 , 20X8. (If no entry Is equlred for a transaction/event, select "No journal entry required" In the first account fleld. Round your answers to nearest whole Hollar amount.) Consolidation Worksheet Entries Nole; cillei debils velule cievils. C. Present all consolidation entries that would appear in a three-part consolidation worksheet as of December 31 , 20X8. (If no entry is equired for a transaction/event, select "No journal entry requlred" In the first account fleid. Round your answers to nearest whole tollar amount.) Consolidation Worksheet Entries Record the excess value (differential) reclassification entry. Note: Enter debits before credits. c. Present all consolidation entrles that would appear In a three-part consolidation worksheet as of December 31 , 20X8. (If no entry Is requlred for a transaction/event, select "No journal entry requlred" In the first account fleld. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries A D (E) F (G) H Record the entry to eliminate the intercompany service revenue. Note: Enter debits before credits. c. Present all consolidation entrles that would appear In a three-part consolidation worksheet as of December 31,208. (If no entry Is requlred for a transaction/event, select "No Journal entry requlred" In the first account fleid. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries Record the entry to eliminate the intercompany receivables/payables. Note: Enter debits before credits. c. Present all consolidation entrles that would appear In a three-part consolidation worksheet as of December 31 , 208. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account fleid. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries A B C D G H Record the entry to eliminate the intercompany dividend owed. Note: Enter debits before credits. c. Present all consolidation entrles that would appear In a three-part consolidation worksheet as of December 31 , 20X8. (If no entry is requlred for a transaction/event, select "No journal entry required" In the first account fleid. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries A B C D E F G H Record the entry to eliminate the gain on the sale of land. Note: Enter debits before credits. c. Present all consolidation entrles that would appear in a three-part consolidation worksheet as of December 31 , 20X8. (If no entry is required for a transaction/event, select "No journal entry requlred" In the first account fleld. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries Record the entry to eliminate the gain on equipment and to correct the asset's basis. Note: Enter debits before credits. c. Present all consolidation entrles that would appear In a three-part consolidation worksheet as of December 31 , 20X8. (If no entry Is requlred for a transaction/event, select "No journal entry required" In the first account fleld. Round your answers to nearest whole dollar amount.) Consolidation Worksheet Entries d. Prepare and complete a three-part worksheet for the preparation of consolidated financlal statements for 208. (Values in the first two columns (the "parent" and "subsidlary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly. combine all credit entrles into one amount and enter this amount in the credit column of the worksheet.)