Purse Corporation acquired 70 percent of Scarf Corporation's ownership on January 1, 20X8, for $162,400. At that date, Scarf reported capital stock outstanding of $136,000 and retained earnings of $96,000, 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 $39,600 and comprehensive income of $45,600 and paid dividends of $34,600. Required: a. 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.) X Answer is not complete. No Event General Journal Debit Credit A 1 Investment in Scarf Corporation 162,400 Cash 162,400 B 2 27,720 Investment in Scarf Corporation Income from Scarf Corporation 27,720 3 Cash 24,220 Investment in Scarf Corporation 24,220 b. 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.) X Answer is not complete. No Event Accounts Debit Credit . 1 Common stock 136,000 96,000 27,720 11,880 Retained earnings Income from Scarf Corporation NCI in Nl of Scarf Corporation Dividends declared Investment in Scarf Corporation NCI in NA of Scarf Corporation 24,220 212,380 35,000 B 2 4,200 OCI from Scarf Corporation NCI in Nl of Scarf Corporation 1,800