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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

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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: Spirited Company Debit Credit $150,000 300,000 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 $ 235,000 500,000 152,000 25,000 150,000 50,000 $ 200,000 70,000 100,000 200.000 284.000 230,000 28,000 $1,112,000 $1,112,000 15,000 90,000 15.000 $ 90,000 50,000 120,000 100,000 70,000 140,000 $570,000 $570,000 Required: (a) Give all consolidation entries required as of December 31, 20X3, to prepare consolidated financial statements. (6) Prepare a three-part consolidation worksheet. (c) Prepare a consolidated balance sheet, income statement, and retained earnings statement for 20X3

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