Rise Corporation purchased 60 percent of the voting common stock of Doughboy Company on January 1, 20X7, for \(\$ 400,000\). At the date of acquisition, Doughboy reported common stock outstanding of \(\$ 240,000\) and retained earnings of \(\$ 310,000\). The purchase price included a differential entirely assignable to equipment with a remaining economic life of seven years. The balance sheet of Doughboy at December 31, 20X9, contained the following amounts:

\section*{Required}

a. Compute the balance in the investment account reported by Rise Corporation at December 31, 20X9.

b. Give all eliminating entries needed to prepare a consolidated balance sheet at December 31, 20X9.

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Cash Accounts Receivable Land Buildings and Equipment Less: Accumulated Depreciation Doughboy Company Balance Sheet December 31, 20X9 $ 90,000 Accounts Payable $125,000 170.000 Bonds Payable 200,000 150,000 Common Stock 240,000 650.000 Retained Earnings 395,000 (100,000) $960,000 $960,000