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 $44,000 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		$	248,000							$	155,000
Depreciable Assets			500,000								316,000
Investment in Spirited Company			140,320
Depreciation Expense			21,000								11,000
Other Expenses			145,000								83,000
Dividends Declared			51,000								28,600
Accumulated Depreciation						$	197,000							$	66,000
Current Liabilities							70,000								50,000
Long-Term Debt							94,720								179,600
Common Stock							193,000								91,000
Retained Earnings							277,000								61,000
Sales							232,000								146,000
Income from Spirited Company							41,600
		$	1,105,320			$	1,105,320			$	593,600			$	593,600

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.)