Purse Corporation acquired 70 percent of Scarf Corporations ownership on January 1, 20X8, for $145,600. At that date, Scarf reported capital stock outstanding of $124,000 and retained earnings of $84,000, and the fair value of the noncontrolling interest was equal to 30 percent of the book value of Scarf. During 20X8, Scarf reported net income of $32,400 and comprehensive income of $38,400 and paid dividends of $27,400. Required: 1. Present all equity-method entries that Purse would have recorded in accounting for its investment in Scarf during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) A- Record the initial investment in Scarf Corp. B- Record Purse Corp.'s 70% share of Scarf Corp.'s 20X8 income. C- Record Purse Corp.'s 70% share of Scarf Corp.'s 20X8 dividend. D- Record Purse Corp.'s proportionate share of OCI from Scarf Corp.

2- Present all consolidation entries needed at December 31, 20X8, to prepare a complete set of consolidated financial statements for Purse Corporation and its subsidiary. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) A- Record the basic consolidation entry. B- Record the Other Comprehensive Income entry.