Public Corporation acquired 90 percent of Station Company’s voting common stock on January 1, 20X1, for $504,900. At the

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Public Corporation acquired 90 percent of Station Company’s
voting common stock on January 1, 20X1, for $504,900. At the time
of the combination, Station reported common stock outstanding of
$125,000 and retained earnings of $381,000, and the fair value of
the noncontrolling interest was $56,100. The book value of
Station’s net assets approximated market value except for patents
that had a market value of $55,000 more than their book value. The
patents had a remaining economic life of five years at the date of
the business combination. Station reported net income of $75,000
and paid dividends of $24,000 during 20X1.

Required:
a. What balance did Public report as its investment in Station at
December 31, 20X1, assuming Public uses the equity method in
accounting for its investment?
b. Prepare the consolidation entry or entries needed to prepare
consolidated financial statements at December 31,
20X1. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)