Proud reported income from operations of $200,000 and paid dividends of $30,000 during 20X6; Slinky reported net income of $150,000 and paid dividends of $20,000 during 20X6.

(A)Prepare the equity method entries by Proud in 20X6.

(B) Prepare the consolidation entries for 20X6.

Multiple Inventory Transfers between Parent and Subsidiary Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other. Because Proud Company holds 60 percent ownership of Slinky Company, Proud's controller compiled the following information with regard to intercompany transactions between the two companies in 20X5 and 20X6