Problem -
Pie Company acquired 75 percent of Strawberry Company's stock at the underlying book value on January 1, 20X8. At that date, the fair value of the non-controlling interest at acquisition was 112,500. During 20X8, Strawberry Company reported net income of $60,000 and paid dividends of $3,000. The following transactions occurred between Pie Company and Strawberry Company in 20X8: Pie Co. sold land costing $90,000 to Strawberry Co. on June 28, 20X8, for $110,000.
Required:
1. Give all Equity Entries on Pl E's book for 20X8
2. Give all eliminating entries needed to prepare a consolidation worksheet for 20X8 assuming that Pie Co. uses the fully adjusted equity method to account for its investment in Strawberry Company.