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 $40,000 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: Proud Corporation Spirited Company Item Debit Credit Debit Credit Current Assets $ 184,000 $ 120,000 Depreciable Assets 505,000 316,000 Investment in Spirited Company 127,680 Depreciation Expense 20,000 10,000 Other Expenses 104,000 72,000 Dividends Declared 46,000 24,400 Accumulated Depreciation $ 173,000 $ 50,000 Current Liabilities 43,000 33,000 Long-Term Debt 101,280 193,400 Common Stock 196,000 93,000 Retained Earnings 226,000 43,000 Sales 209,000 130,000 Income from Spirited Company 38,400 $ 986,680 $ 986,680 $ 542,400 $ 542,400 Required: a. Prepare all consolidation entries required as of December 31, 20X3, 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. (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.) c. Prepare a consolidated balance sheet, income statement, and retained earnings statement for 20X3. (Amounts to be deducted should be indicated with a minus sign.)