Problem 3. (40 pts.) On January 1, 2008, Gregory Corporation acquired 90 percent of Nova Company's voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Nova at that date. Gregory uses the equity method in accounting for its ownership of Nova. On December 31, 2008, the trial balances of the two companies are as follows: Gregory Corp. Nova Company Debit Credit Debit Credit Current Assets $200,000 $120,000 Depreciable Assets 300,000 225,000 Investment in Nova Company Stock 139,500 Depreciation Expense 30,000 25,000 Other Expenses 100,000 60,000 Dividends Declared 30,000 10,000 $75,000 $120,000 Accumulated Depreciation 25,000 62,000 Current Liabilities 75,000 90,000 Long-Term Debt 75,000 100,000 Common Stock 65,000 120,000 Retained Earnings 300,000 110,000 Sales 22,500 Income from Subsidiary $799,500 $799,500 $440,000 $440,000 Required: 1. Give the journal entries recorded by Gregory Corporation during 2008 on its books for its investment in Nova using the equity method. 2. Provide all eliminating entries required as of December 31, 2008, to prepare consolidated financial statements. 3. Prepare a three-part consolidation workpaper