Stage Company operates on a calendar-year basis, reporting its results of operations quarterly. For the first quarter of 20X1, Stage reported sales of $255,000 and operating expenses of $195,000 and paid dividends of $14,000. On April 1, 20X1, Parachute Theaters Inc. acquired 85 percent of Stages common stock for $782,000. At that date, the fair value of the noncontrolling interest was $138,000, and Stage had 100,000 outstanding shares of $1 par common stock, originally issued at $6 per share. The differential is related to goodwill. On December 31, 20X1, the management of Parachute Theaters reviewed the amount attributed to goodwill as a result of its purchase of Stage common stock and concluded that goodwill was not impaired. Stages retained earnings statement for the full year 20X1 appears as follows:

Retained Earnings, January 1, 20X1	$	149,000
Net Income		174,000
Dividends		(32,000	)
Retained Earnings, December 31, 20X1	$	291,000

Parachute Theaters accounts for its investment in Stage using the equity method. Required: a. Present all entries that Parachute Theaters would have recorded in accounting for its investment in Stage during 20X1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the purchase of Stage Company stock.
• Record the equity-method income.
• Record the dividends from Stage Company.

b. Present all consolidation entries needed in a worksheet to prepare a complete set of consolidated financial statements for the year 20X1.

• Record the preacquisition income and dividends consolidation entry.
• Record the basic consolidation entry.
• Record the excess value (differential) reclassification entry.