Proud Caporation acquired $80$ percent of Spirted Company's voting stock on January $1,20$x$3,$ at undertyng book value. The fair velue of the nencontroling Interest was equal to $20$ percent of the book value of Spirted at that date. Asaume that the accumulabed depreciation on depreciable assets was $$60,000$ on the acquisition date. Proud uses the equly method in accounting for its ownershp of Spirlied. On December $31,20$X$4,$ the trial balances of the two companies are as followe:

$\backslash$table$[[$Iten$,$Proyd $C,$garntition,,spiritet,Conpary$],[$Current Assets,Dewif,Credit,,Debit,Credit$],[$Depreciable Ascets,$1235,000,,,150,020,],[$Imestment in Spirited conpany,suy.teg,,,$300,w4,],[$Depreciation Experise,ris,enen,,,,$],[$Other Expenses,$150,0n0,,,$intan,$],[$Dividends Declared,$5.$ hoe,,,$15.$en$,],[$Accunulated Depreciation,,$+200\mathrm{.}000,,,$& $54\mathrm{.}009],[$Current Liabilities,,ro$,$ es$,,,$S$4,018],[$Long$-$Tern Debt,,$160,0,,,12$x$,008],[$Coman Stock,,$260.w,,,10$w$,110],[$Retained Earnings,,$284,w,,,70,000],[$Sales$,,23$e$.$ no$,,,140,000],[$Incone fron Spirited colpany,,$28\mathrm{.}00,,,],[,+1,112,100,1,112,0\%,,$stune,is s$70,008]]$

Required:

a$.$ Prepare all consolidation entries required on Decomber $31,204,$ to prepare consoldated financial statements: Notes If no entry is requlred for a transactionicwent, select $"$Wo joumal critry required" in the frst acccount fletd.

b$.$ Prepare a three$-$part consolidation worksheet as of December $31,204.$

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.