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Blank Corporation acquired 100 percent of Faith Corporation’scommon stock on December 31, 20X2, for $190,000. Data from thebalance sheets of the two companies included the following amountsas of the date of acquisition:

Item	Blank				Faith
	Corporation				Corporation
Assets
Cash		$	67,000			$	21,000
Accounts Receivable			82,000				39,000
Inventory			111,000				64,000
Buildings and Equipment(net)			230,000				166,000
Investment in FaithCorporation Stock			190,000
Total Assets		$	680,000			$	290,000
Liabilities and Stockholders’Equity
Accounts Payable		$	90,000			$	20,000
Notes Payable			134,000				80,000
Common Stock			83,000				49,000
Retained Earnings			373,000				141,000
Total Liabilities andStockholders’ Equity		$	680,000			$	290,000

At the date of the business combination, the book values ofFaith’s net assets and liabilities approximated fair value. AssumeFaith Corporation’s accumulated depreciation on buildings andequipment on the acquisition date was $13,000.

  

Required:

a.	Give the consolidation entry or entries needed to prepare aconsolidated balance sheet immediately following the businesscombination. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.)

b.

Prepare a consolidated balance sheet worksheet. (Valuesin the first two columns (the "parent" and "subsidiary" balances)that are to be deducted should be indicated with a minus sign,while all values in the "Consolidation Entries" columns should beentered as positive values. For accounts where multiple adjustingentries are required, combine all debit entries into one amount andenter this amount in the debit column of the worksheet. Similarly,combine all credit entries into one amount and enter this amount inthe credit column of the worksheet.)