On June 10, 20X8, Brown Corporation purchased 60 percent of the common stock of Amber Company. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows:

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a. Give the eliminating entries required to prepare a consolidated balance sheet immediately after the purchase of Amber Company shares.

b. Explain how eliminating entries differ from other types of journal entries recorded in the normal course of business.

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Brown Corp. Amber Company Item Book Value Fair Value Cash Accounts Receivable $ 15.000 $ 5.000 $ 5,000 30,000 10.000 10.000 Inventory 80.000 20.000 25.000 Buildings and Equipment (net) 120.000 50.000 70.000 Investment in Amber Stock 60.000 Total $305.000 $85.000 $110.000 Accounts Payable $ 25.000 Bonds Payable 150.000 $ 3.000 25.000 $ 3.000 25.000 Common Stock 55.000 20.000 Retained Earnings 75.000 37.000 Total $305.000 $85.000 $ 28.000