Blank Corporation acquired 100 percent of Faith Corporations common stock on December 31, 20X2, for $150,000. Data

Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $150,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

At the date of the business combination, the book values of Faith’s net assets and liabilities approximated fair value. Assume that Faith Corporation’s accumulated depreciation on buildings and equipment on the acquisition date was $30,000.

Required
a. Give the elimination entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.
b. Prepare a consolidated balance sheetworksheet.

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Blank Corporation $ 65,000 87,000 110,000 220,000 150,000 $632,000 $92,000 150,000 100,000 290,000 $632,000 Faith Corporation 18,000 37,000 60,000 150,000 ltem Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Faith Corporation Stock Total Assets $265,000 Accounts Payable Notes Payable Common Stock Retained Earnings Total Liabilities & Stockholders' Equity 35,000 80,000 60,000 90,000 $265,000