Purse Corporation acquired 70 percent of Scarf Corporations ownership on January 1, 20X8, for $141,400. At that date, Scarf reported capital stock outstanding of $121,000 and retained earnings of $81,000, 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 $30,600 and comprehensive income of $36,600 and paid dividends of $25,600.

1. Record the initial investment in Scarf Corp.

2. Record Purse Corp.'s 70% share of Scarf Corp.'s 20X8 income.

3. Record Purse Corp.'s 70% share of Scarf Corp.'s 20X8 dividend.

4. Record Purse Corp.'s proportionate share of OCI from Scarf Corp.

Consolidation Worksheet Entries

1. Record the basic consolidation entry.

2. Record the Other Comprehensive Income entry.