Prince Corporation holds 75 percent of the common stock of Sword Distributors Inc., purchased on December 31, 20X1, for $2,100,000. At the date of acquisition, Sword reported common stock with a par value of $910,000, additional paid-in capital of $1,260,000, and retained earnings of $550,000. The fair value of the noncontrolling interest at acquisition was $700,000. The differential at acquisition was attributable to the following items: Inventory (sold in 20X2) $ 20,000 Land 28,000 Goodwill 32,000 Total Differential $ 80,000 Inventory (sold in 20X2) $ 20,000 Land 28,000 Goodwill 32,000 Total Differential $ 80,000 At December 31, 20X8, trial balances for Prince and Sword appeared as follows: Prince Corporation Sword Distributors Inc. Item Debit Credit Debit Credit Cash $ 56,700 $ 44,000 Current Receivables 108,800 96,400 Inventory 288,000 220,900 Inventory 288,000 220,900 Land 402,000 1,219,000 Buildings & Equipment 2,500,000 2,990,000 Cost of Goods Sold 2,191,000 517,000 Depreciation & Amortization 185,000 72,000 Other Expenses 1,374,000 213,000 Dividends Declared 45,000 15,000 Accumulated Depreciation $ 1,097,000 $ 420,000 Current Payables 86,200 331,300 Bonds Payable 812,000 193,000 Common Stock 97,000 910,000 Additional Paid-in Capital 1,264,000 1,260,000 Retained Earnings, January 1 1,459,800 1,310,000 Sales 4,868,050 991,000 Other Income or Loss 99,000 28,000 Income from Sword Distributors 147,750 Total $ 9,930,800 $ 9,930,800 $ 5,415,300 $ 5,415,300 As of December 31, 20X8, Sword had declared but not yet paid its fourth-quarter dividend of $5,000. Both companies use straight-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 differential as of January 1, 20X8. b. Verify the balance in Princes Investment in Sword Distributors account as of December 31, 20X8. c. Present all consolidation entries 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 required" in the first account field. Round your answers to nearest whole dollar amount.) d. Prepare and complete a three-part worksheet for the preparation of consolidated financial statements for 20X8. (Values in the first two columns (the "parent" and "subsidiary" 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 entries into one amount and enter this amount in the credit column of the worksheet.)