Proud Corporation acquired 80 percent of Spirited Company's 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 during 20X3. On December 31, 20X3, the trial balances of the two companies are as follows: Item Current Assets Depreciable Assets Investment in Spirited Company Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Spirited Company Proud Corporation Debit Credit Spirited Company Debit Credit $ 173,000 500,000 136,000 25,000 $ 105,000 300,000 105,000 40,000 15,000 75,000 10,000 $ 175,000 $ 75,000 50,000 40,000 100,000 120,000 200,000 230,000 200,000 100,000 50,000 120,000 24,000 $ 979,000 $ 979,000 $ 505,000 $ 505,000 Required: a. Prepare all consolidation entries required as of December 31, 20X3, to prepare consolidated financial statements. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.