On June 10, 20X8, Game Corporation acquired 60 percent of Amber Companys common stock. The fair value

On June 10, 20X8, Game Corporation acquired 60 percent of Amber Company’s common stock. The fair value of the noncontrolling interest was $32,800 on that date. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows:

Required
a. Give the elimination entries required to prepare a consolidated balance sheet immediately after the purchase of Amber Company shares.
b. Explain how elimination entries differ from other types of journal entries recorded in the normal course ofbusiness.

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Game Corp Amber Company Item Book Value Book Value Fair Value $ 25,800 30,000 80,000 120,000 49,200 $305,000 $ 25,000 150,000 55,000 75,000 $305,000 Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Amber Stock $ 5,000 5,000 10,000 25,000 70,000 10,000 20,000 50,000 Total $85,000 $110,000 Accounts Payable Bonds Payable Common Stock Retained Earnings Total 3,000 3,000 25,000 20,000 37,000 25,000 $85,000 $ 28,000