Q1. Will rate.

On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $602,270, an amount $21,500 in excess of the book value of equity acquired. The excess relates to the understatement of Set Companys land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow:

		Set Company			Consolidated Balances
1/1/14 retained earnings		179,700			855,900
Net income from above		125,600			400,000
Dividends declared		(51,400	)		(79,700)
12/31/14 retained earnings to the balance sheet		253,900			1,176,200

Set Companys stockholders equity is composed of common stock and retained earnings only.

On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $602,270, an amount $21,500 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Dividends declared 12/31/14 retained earnings to the balance sheet Set Company 179,700 125,600 (51,400) 253,900 Consolidated Balances 855,900 400,000 (79,700) 1,176,200 Set Company's stockholders' equity is composed of common stock and retained earnings only. Prepare the eliminating entries required for the preparation of a consolidated statements workpaper on December 31, 2014, assuming the use of the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,125.) Debit Credit Account Titles and Explanation Dividend Income 46260 46260 Dividends Declared - Subsidiary Company (To record dividend income) Common Stock - Subsidiary Company 465600 Retained Earnings - Subsidiary Company 179,700 Difference between Implied and Book Value Investment in Subsidiary 602,270 Noncontrolling Interest (To eliminate investment in subsidiary and create noncontrolling interest) Land Difference between Implied and Book Value (To eliminate excess of the book value of equity acquired.)