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Peanut Company acquired 100 percent of Snoopy Companys outstanding common stock for $316,000 on January 1, 20X8, when the book value of Snoopys net assets was equal to $316,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:

	Peanut Company							Snoopy Company
	Debit			Credit				Debit			Credit
Cash	$	131,000						$	77,000
Accounts Receivable		185,000							70,000
Inventory		203,000							91,000
Investment in Snoopy Company		369,000							0
Land		217,000							99,000
Buildings & Equipment		707,000							185,000
Cost of Goods Sold		212,000							132,000
Depreciation Expense		61,000							14,000
Selling & Administrative Expense		225,000							43,000
Dividends Declared		103,000							21,000
Accumulated Depreciation				$	431,000						$	28,000
Accounts Payable					61,000							46,000
Bonds Payable					198,000							79,000
Common Stock					496,000							205,000
Retained Earnings					356,000							111,000
Sales					797,000							263,000
Income from Snoopy Company					74,000							0
Total	$	2,413,000		$	2,413,000			$	732,000		$	732,000

(Assume the company prepares the optional Accumulated Depreciation Elimination Entry) Required: a. Prepare the journal entries on Peanuts books for the acquisition of Snoopy on January 1, 20X8, as well as any normal equity method entry(ies) related to the investment in Snoopy Company during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare a consolidation worksheet for 20X8. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

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