Proud Corporation acquired 80 percent of Stergis Companys voting stock on January 1, 20X3, ar underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Stergis at that date. Proud uses the equity method in accounting for its ownership of Stergis during 20X3. On December 31, 20X3, the trial balances of the two companies are as follows:

Suppose that the fair value of the payment made by Proud was $120.000 and the book value of net assets of Stergis was the same as of the date of acquisition.

REQUIRED:

1- Give all journals regarding the EQUITY METHOD. 20 points

2- Give all elimination entries. 20 points

3- Prepare consolidated financial statements. (USE MY TEMPLATES) 40 points

4- In calculating NCI, you must also show how you calculated it in detail! 20 points

YOU MUST PREPARE AN EXCEL FILE. YOU CAN UPLOAD YOUR EXCEL WORKSHEET