Proud corporation acquired 80 percent of spirited company’s voting stock on january 1, 20x3, at underlying book value. the fair value of the noncontrolling interest was equal to 20 percent of the book value of spirited at that date. assume that the accumulated depreciation on depreciable assets was $44,000 on the acquisition date. proud uses the equity method in accounting for its ownership of spirited. on december 31, 20x4, the trial balances of the two companies are as follows: proud corporation spirited company item debit credit debit credit current assets $ 248,000 $ 158,000 depreciable assets 500,000 308,000 investment in spirited company 133,760 depreciation expense 21,000 11,000 other expenses 142,000 82,000 dividends declared 50,000 27,800 accumulated depreciation $ 195,000 $ 66,000 current liabilities 66,000 46,000 long-term debt 113,960 186,800 common stock 182,000 87,000 retained earnings 266,000 57,000 sales 231,000 144,000 income from spirited company 40,800 $ 1,094,760 $ 1,094,760 $ 586,800 $ 586,800 required: a. prepare all consolidation entries required on december 31, 20x4, to prepare consolidated financial statements. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)no event accounts debit credita 1 common stock retained earnings income from spirited company nci in ni of spirited company dividends declared investment in spirited company nci in na of spirited company b 2 accumulated depreciation depreciable assets proud corporation and subsidiaryworksheet for consolidated financial statementsdecember 31, 20x4consolidation entries proud corp. spirited co. dr cr consolidatedincome statement sales less: depreciation expense less: other expenses income from spirited co. consolidated net income $0 $0 $0 $0 $0nci in net income controlling interest in net income $0 $0 $0 $0 $0statement of retained earnings beginning balance net income 0 0 0 0 less: dividends declared ending balance $0 $0 $0 $0 $0balance sheet current assets depreciable assets less: accumulated depreciation investment in spirited co. total assets $0 $0 $0 $0 $0liabilities and equity current liabilities long-term debt common stock retained earnings nci in na of spirited co. total liabilities and equity $0 $0 $0 $0 $0