Purse Corporation acquired $70$ percent of Scarf Corporation's ownership on January $1,20$X$8,$ for $$142,800.$ At that date, Scarf reported capital stock outstanding of $$122,000$ and retained earnings of $$82,000,$ and the fair value of the noncontrolling interest was equal to $30$ percent of the book value of Scarf. During $20$X$8,$ Scarf reported net income of $$31,200$ and comprehensive income of $$37,200$ and paid dividends of $$26,200.$

Required:

a$.$ Present all equity$-$method entries that Purse would have recorded in accounting for its investment in Scarf during $20$X$8.$ Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

$$ View journal entry worksheet

$\backslash$table$[[,$No$,$Event,General Journal,Debit,Credit$],[-,$A$,1,$Investment in Scarf Corporation,$142,800,],[,,,$Cash,,$142,800],[,,,,,],[,$B$,2,$Investment in Scarf Corporation,$21,840,],[,,,$Income from Scarf Corporation,,$21,840],[,,,,,],[0,$C$,3,$Cash,$18,340,],[,,,$Investment in Scarf Corporation,,$18,340],[,,,,,],[7,$D$,4,$Investment in Scarf Corporation,,$],[,,,$Other comprehensive income from Scarf Corporation,,$]]$

b$.$ Present all consolidation entries needed at December $31,20$X$8,$ to prepare a complete set of consolidated financial statements for

Purse Corporation and its subsidiary.

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