Required: please prepare all consilidation entries needed at December $31,20$X$8$

PS26 Intercorporate Bond Holdings and Other Transfers (Effective Interest Method) On January I , 20X5, Pond Corporation purchased 75 percent of Skate Company's stock at underlying book value. At that date, the fair value of thc noncontrolling interest was equal to 25 percent of Skate's book value. Thc balance sheets for Pond and Skate at January I , 20X8, and December 31, 20X8, and income statements for 20X8 rted as follows: were 20X8 Balance Sheets 20X8 Income Statements Pond Corporation Skate Company Pond Corporation Skate Company Cash Accounts Receivable Interest & Other Receivables Inventory Land Buildings & Equipment Accumulated Depreciation Investment in Skate Company. Bonds Investment in Tin Co. Bonds Total Assets Accounts Payable Interest & Other Payables Bonds Payable Bond Discount Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities January I $ 57,600 130,000 40.000 100.000 50,000 400,000 (150.000) 122.327 42,800 135.000 $927,727 $ 60.000 40,000 300.000 150.000 155000 222.727 $ 927,727 December 31 $ 53.100 176.000 45.000 140,000 50.000 400,000 (185,000) 139,248 42,494 134.000 $994,842 $ 65.000 45.000 300,000 150,000 155.000 279.842 $994.842 January 1 $ 10,000 60,000 8.000 '50,000 22.000 240.000 (70,000) $320,000 $ 16,500 7.000 100.000 (4,005) 30,000 20,000 150,505 $320,000 December 31 $ 47.000 65,000 10,000 50.000 22,000 240.000 (94.000) $340,000 $ 11.000 12.000 100.000 (3.597) 30,000 20,000 170,597 $340.ooo Sales income from Skate Interest Income Total Revenue Cost of Goods Sold Other Operating Expenses Depreciation Expense Interest Expense Miscellaneous Expenses Net Income Additional Information $285,000 50,000 35,000 24,000 11.900 $450,000 24.421 18.594 $493,015 405,900 $ 87,115 $136,000 40.000 24,000 10,408 9,500 $250,000 $2S0.ooo 219908 $ 30,092 1. Pond sold a building to Skate for $65,000 on December 31, 20X7. Pond ha&purchased the building for S125,()00 and was depreciating it on a straight-line basis over 25 years. At the time of sale, Pond reported accumulated depreciation of $75,000 and a remaining life of 10 years. 2. On July l, Skate sold land that it had purchased for S22,OOO to Pond for S ,OOO- Pond is planning to build a new warehouse on the property prior to the end of20X9. 3. Skate issued $100,000 par value, 10-year bonds with a coupon rate of 10 percent on January 1,20X5, at $95,000. On December 31 , 20X7, Pond purchased S40,OOO par value of Skate's bonds for S42,800. Interest payments are made on July I and January l. 4. Pond and Skate paid dividends of $30,000 and Sl 0,000, respectively, in 20X8. Required Prepare all consolidation entries needed at December 31, 20X8.