Elder Corporation purchased 75 percent of the voting common stock of Dynamic Corporation on December 31, 20X4, for \(\$ 388,000\). At the date of combination, Dynamic reported the following:

At December 31, 20X4, the book values of Dynamic's net assets and liabilities approximated their fair values, except for buildings which had a fair value of \(\$ 80,000\) more than book value and inventories which had a fair value \(\$ 36,000\) more than book value.
\section*{Required}
Elder Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Give the eliminating entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4.

Transcribed Image Text:

Current Assets $220,000 Current Liabilities $ 80,000 Long-Term Assets (net) 420,000 Long-Term Liabilities 200.000 Common Stock 120,000 Retained Earnings 240,000 Total $640,000 Total $640,000