Purchase Corporation purchased $60$ percent of Steal Company ownership on January $1,20$X$7,$ for $$292,500.$ Steal reported the following net income and dividend payments:

Year Net Income Dividends Paid

$20$X$7$ $ $47,000$ $ $27,000$

$20$X$857,00037,000$

$20$X$932,00012,000$

On January $1,20$X$7,$ Steal had $$265,000$ of $$8$ par value common stock outstanding and retained earnings of $$165,000,$ and the fair value of the noncontrolling interest was $$195,000.$ Steal held land with a book value of $$29,500$ and a market value of $$37,000$ and equipment with a book value of $$334,000$ and a market value of $$374,000$ at the date of combination. The remainder of the differential at acquisition was attributable to an increase in the value of patents, which had a remaining useful life of $10$ years. All depreciable assets held by Steal at the date of acquisition had a remaining economic life of eight years.

Required:

Compute the increase in the fair value of patents held by Steal.

Prepare the consolidation entries needed at January $1,20$X$7,$ to prepare a consolidated balance sheet.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Compute the balance reported by Purchase as its investment in Steal at December $31,20$X$8.$

Prepare the journal entries recorded by Purchase with regard to its investment in Steal during $20$X$9.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Prepare the consolidation entries needed at December $31,20$X$9,$ to prepare a three$-$part consolidation worksheet.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.