Cameron Corporation purchased 70 percent of the common stock of Darla Corporation on December \(31,20 \times 4\), for \(\$ 87,500\). 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 Darla Corporation's assets and liabilities approximated fair value. At December 31, 20X4, Cameron Corporation reported accounts payable of \(\$ 12,500\) to Darla Corporation and Darla Corporation reported an equal amount in its accounts receivable.
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a. Give the eliminating entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.

b. Prepare a consolidated balance sheet workpaper.

c. Prepare a consolidated balance sheet in good form.

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Cash Item Cameron Corporation $ 65.000 Darla Corporation $ 21.000 Accounts Receivable Inventory 90,000 44,000 130.000 75,000 Land 60.000 30,000 Buildings and Equipment 410,000 250,000 Less: Accumulated Depreciation (150,000) (80,000) Investment in Darla Corporation Stock 87,500 Total Assets $692.500 $340.000 Accounts Payable $152,500 $ 35,000 Mortgage Payable 250.000 180,000 Common Stock 80.000 40,000 Retained Earnings 210,000 85,000 Total Liabilities and Stockholders' Equity $692,500 $340.000