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 noncontrolling 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.