On January 5, 2018, Alpha Inc. acquired 80% of the outstanding voting shares of Beta Inc. for $2,000,000 cash. Following are the separate balance sheets for the two companies immediately after the stock purchase, as well as fair value information regarding Beta Inc.:

Required:
1. Prepare the entries for adjustments and eliminations required to prepare the consolidated balance sheet immediately after acquisition under the acquisition method.
2. Prepare the consolidated balance sheet immediately after acquisition.

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Beta Alpha Book Value Falr Value Assets Current assets Fixed assets, net Investment in Beta $1,750,000 500,000 500,000 5,000,000 ,625,000 2,000,000 2,000,000 Total Assets $8,750,000 $2,125,000 $2,500,000 Beta Alpha Book Value Falr Value Liabilities Current Liabilities 250,000 125,000 125,000 Stockholders' Equity Common stock Capital in excess of par Retained earnings Total Stockholders' Equity 7,000,000 500,000 1,500,000 500,000 2,000,000 Total Liabilities and Stockholders' Equity $8,750,000 $2.125,000 8,500,000 2