Saved Help Save & Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $48,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited. On December 31, 20X4, the trial balances of the two companies are as follows: Item 55:48 Current Assets Depreciable Assets Investment in Spirited Company Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Spirited Company Required: Proud Corporation Debit Credit $ 249,000 503,000 128,960 22,000 Spirited Company Debit Credit $155,000 314,000 144,000 53,000 $ 193,000 12,000 87,000 27,800 $ 72,000 68,000 48,000 88,160 187,800 198,000 84,000 282,000 54,000 230,000 150,000 40,800 $1,099,960 $1,099,960 $595,800 $595,800 a. Prepare all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements. (If no entry is required for a transection/event, select "No journal entry required" in the first account field.) 2 0155:26 Income Statement Sales Less Depreciation expense Less: Other expenses PROUD CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X4 Consolidation Entries Proud Corp. Spirited Co. DR CR Consolidated Income from Spirited Co. Consolidated Net Income $ 0 $ 0 $ 0 S 0 $ 0 NCI in net income Controlling Interest in Net Income $ 05 0 $ 0 $ 0 $ 0 Statement of Retained Earnings Beginning balance Net income 0 0 0 0 Less Dividends declared Ending Balance $ 0 $ 0 $ 0 $ 0 $ 0 Balance Sheet m 2 part2 i Net income Less: Dividends declared Ending Balance Balance Sheet Current assets Depreciable assets Less: Accumulated depreciation Investment in Spirited Co Total Assets Liabilities and Equity Current liabilities Long-term debt Common stock Retained earnings 0 0 Saved 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 $ 0 $ 0 S 0 $ 0 NCI in NA of Spirited Co. Total Liabilities and Equity $ 0 $ 0 $ 0 $ 0 $ 0 13