Proud Corporation acquired 80 percent of Spirited Companys voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $60,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited. On December 31, 20X4, the trial balances of the two companies are as follows:

	Proud Corporation									Spirited Company
Item	Debit					Credit				Debit				Credit
Current Assets		$	235,000								$	150,000
Depreciable Assets			500,000									300,000
Investment in Spirited Company			152,000
Depreciation Expense			25,000									15,000
Other Expenses			150,000									90,000
Dividends Declared			50,000									15,000
Accumulated Depreciation						$	200,000								$	90,000
Current Liabilities							70,000									50,000
Long-Term Debt							100,000									120,000
Common Stock							200,000									100,000
Retained Earnings							284,000									70,000
Sales							230,000									140,000
Income from Spirited Company							28,000
		$	1,112,000			$	1,112,000				$	570,000			$	570,000

Required: a. Prepare all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare a three-part consolidation worksheet as of December 31, 20X4. (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.)