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Prime Corporation acquired 100 percent ownership of Steak Products Company on January 1 , 201, for $255,000. On that date, Steak reported retained earnings of $72,000 and had $111,000 of common stock outstanding. Prime has used the equity-method in accounting for its investment in Steak. The trial balances for the two companies on December 31,205, appear below. 1. On the date of combination (five years ago), the fair value of Steak's depreciable assets was $72,000 more than the book value. Accumulated depreciation at that date was $10,000. The differential assigned to depreciable assets should be written off over the following 10-year period. 2. There was $21,000 of intercorporate receivables and payables at the end of 205. Required: a. Prepare all journal entries that Prime recorded during 205 related to its investment in Steak. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) A Record Prime Corp's share of Steak Products' 20X5 income. B Record Prime Corp's share of Steak Products' 20X5 dividend. C Record the amortization of the excess acquisition price. Note: Enter debits before credits. b. Prepare all consolidating entries needed to prepare consolidated statements for 205. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) A Record the basic consolidation entry. B Record the amortized excess value reclassification entry. C Record the excess value (differential) reclassification entry. D Record the entry to eliminate the intercompany accounts. E Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. c. Prepare a three-part worksheet as of December 31,205. (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.) Total Liabilities \& Equity

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