Server Corporation is a majority$-$owned subsidiary of Proxy Corporation. Proxy acquired $75$ percent ownership on January $1,203,$ for $$133,500.$ At that date, Server reported common stock outstanding of $$60,000$ and retained earnings of $$90,000,$ and the fair value of the noncontrolling interest was $$44,500.$ The differential is assigned to equipment, which had a fair value $$28,000$ more than book value and a remaining economic life of seven years at the date of the business combination. Server reported net income of $$30,000$ and paid dividends of $$12,000$ in $203.$

Required:

a$.$ Prepare the journal entries recorded by Proxy during $203$ on its books if it accounts for its investment in Server using the equity method.

Note: If no entry is required for a transaction$/$event$,$ select $"$No joumal entry required" in the first account field.

b$.$ Prepare the consolidation entries needed at December $31,203,$ to prepare consolidated financial statements. Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Consolidation Worksheet Entries

A

c

Record the excess value $($differential$)$ redassification entry.

Note: Inter debits befare credts:

$\backslash$table$[[$Event$,$Aceounts,Debit,Credit$],[3,,17,],[,,,],[,,,],[,,\backslash$table$[[$ric call:$],[$orly$.]],$dease$]]$

vlow nornedldation critine