On January 1, 20X8, Gregory Corporation Acquired 90 Percent of Nova

Essay

On January 1, 20X8, Gregory Corporation acquired 90 percent of Nova Company's voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Nova at that date. Gregory uses the equity method in accounting for its ownership of Nova. On December 31, 20X8, the trial balances of the two companies are as follows: Required:
1) Provide all eliminating entries required as of December 31, 20X8, to prepare consolidated financial statements.
2) Prepare a three-part consolidation worksheet.