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On January 1, 2018, Prachyl Company acquired 100% of Smith Companys voting stock for $20,000 in cash. Smiths total shareholders equity at January 1, 2018 was $5,000. Some of Smiths assets and liabilities at the date of acquisition had fair values that were different from reported values, as follows:

	Book Value	Fair Value
Plant assets, net (10 years, straight-line)	$15,000	$ 10,000
Identifiable intangibles (indefinite life)	0	9,000

It is now December 31, 2020 (3 years later). Impairment of recognized identifiable intangibles totals $400 for 2018 and 2019, and there is no impairment in 2020. There is no goodwill impairment as of the beginning of 2020, but goodwill impairment for 2020 is $1,200. Prachyl uses the complete equity method to account for its investment. December 31, 2020 trial balances for Prachyl and Smith follow:

	Prachyl Dr (Cr)	Smith Dr (Cr)
Current assets	$ 5,000	$ 2,500
Plant assets, net	28,700	22,000
Identifiable intangibles
Investment in Smith	28,400
Goodwill
Liabilities	(20,300)	(11,000)
Capital stock	(15,000)	(2,000)
Retained earnings, beginning	(25,000)	(10,000)
Sales revenue	(25,000)	(14,000)
Equity in net income of Smith	(800)
Cost of goods sold	20,000	9,000
Operating expenses	4,000	3,500
	$ 0	$ 0

The total Goodwill generated as a result of this acquisition was $11,000.

REQUIRED:

Prepare the C, E, R and O eliminating entries for 2020.

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