Part $2$

At year end, Puerto Rico Corp. found that a $$10,000$ impairment of goodwill took place during $2024.$ At the end of $2024,$ Puerto Rico owed San Juan $$25,000,$ and San Juan owed Puerto Rico $$45,000.$ The trial balance data for Puerto Rico Corp. and San Juan Corp. on December $31,2024$ are below:

$\backslash$table$[[,$Puerto Rico Corp.,San Juan Corp.$],[$Item$,$Debit,Credit,Debit,Credit$],[$Cash$,290,000,,100,000,],[$Accounts Receivable,$210,000,,190,000,],[$Inventory$,400,000,,50,000,],[$Land$,300,000,,140,000,],[$Buildings & Equipment,$1,100,000,,330,000,],[$Trademarks$,-,,40,000,],[$Investment in Sub,$636,000,,,],[$Cost of Goods Sold,$550,000,,220,000,],[$Depreciation Expense,$130,000,,45,000,],[$Other Expenses,$20,000,,35,000,],[$Dividends Declared,$100,000,,50,000,],[$Accounts Payable,,$300,000,,120,000],[$Bonds Payable,,$1,068,000,,30,000],[$Common Stock,,$1,000,000,,400,000],[$Additional Paid$-$In Capital,,$-5,,50,000],[$Retained Earnings,,$350,000,,150,000],[$Sales$,,910,000,,450,000],[$Income from Sub,,$108,000,,]]$

Required:

A$.$ Prepare the journal entries Puerto Rico made during $2024$ related to its investment in Sandusky.

B$.$ Prepare the consolidation$/$eliminating entries needed to consolidate the two companies at the end of $2024.$

C$.$ Prepare the consolidation working paper for December $31,2024.$ Put required CEs$/$EEs in their proper columns $($similar to Figure $5-4).$

Check Figures:

Net Assets: $$3,175,000$

NCI in Net Income of San Juan: $$27,000$

NCI in Net Assets of San Juan: $$159,000$