Post Delivery Service acquired at book value 80 percent of thevoting shares of Script Real Estate Company. On that date, the fairvalue of the noncontrolling interest was equal to 20 percent ofScript’s book value. Script Real Estate reported common stock of$300,000 and retained earnings of $105,000. During 20X3, PostDelivery provided courier services for Script Real Estate in theamount of $23,000. Also during 20X3, Script Real Estate purchasedland for $5,000. It sold the land to Post Delivery Service for$26,000 so that Post Delivery could build a new transportationcenter. Post Delivery reported $59,000 of operating income from itsdelivery operations in 20X3. Script Real Estate reported net incomeof $69,000 and paid dividends of $10,500 in 20X3.

Required:
a. Compute consolidated net income for 20X3.

b. Prepare all journal entries recorded by Post Delivery Servicerelated to its investment in Script Real Estate assuming Post usesthe fully adjusted equity method in accounting for the investment.(If no entry is required for a transaction/event, select"No journal entry required" in the first accountfield.)

c. Prepare all consolidation entries required in preparing aconsolidation worksheet as of December 31, 20X3. (If noentry is required for a transaction/event, select "No journal entryrequired" in the first account field.)