Thompson Company spent \(\$ 240.000\) to buy all the stock of Lake Corporation on January 1, \(20 \times 2\). The balance sheets of the two companies on December \(31,20 \times 3\), showed the following amounts:

Lake Corporation reported retained earnings of \(\$ 100,000\) at the date of acquisition. The difference between the purchase price and underlying book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition.
\section*{Required}

a. Give the appropriate eliminating entry or entries needed to prepare a consolidated balance sheet as of December 31,20X3.

b. Prepare a consolidated balance sheet workpaper as of December 31, 20X3.

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Cash Accounts Receivable Land Buildings and Equipment Less: Accumulated Depreciation Investment in Lake Corporation Thompson Company $ 30.000 100.000 60.000 500.000 (230.000) 252.000 Lake Corporation $ 20,000 40.000 50.000 350.000 (75.000) $712.000 $385.000