Plaza Corporation acquired 100 percent of Square Corporation’s voting common stock on December 31, 20X4, for $395,000. At the date of combination, Square reported the following:

At December 31, 20X4, the book values of Square’s net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $20,000 less than book value, and inventories, which had a fair value $36,000 more than book value.

Required

Plaza Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Give the consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4.

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Cash Inventory Buildings (net) Total $120,000 100,000 420,000 $640,000 Current Liabilities Long-Term Liabilities Common Stock Retained Earnings Total $ 80,000 200,000 120,000 240,000 $640,000