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:

Item	Proud Corporation		Spirited Company
	Debit	Credit	Debit	Credit
Current Assets	$ 250,000		$ 153,000
Depreciable Assets	515,000		300,000
Investment in Spirited Company	128,640
Depreciation Expense	21,000		11,000
Other Expenses	144,000		87,000
Dividends Declared	54,000		26,200
Accumulated Depreciation		$ 199,000		$ 66,000
Current Liabilities		68,000		48,000
Long-Term Debt		117,440		178,200
Common Stock		187,000		84,000
Retained Earnings		271,000		54,000
Sales		231,000		147,000
Income from Spirited Company		39,200
	$ 1,112,640	$ 1,112,640	$ 577,200	$ 577,200

Required:

1. Prepare all consolidation entries required on December 31, 20X4, 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.

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.