1. Majority-Owned Subsidiary Acquired at More Than Book Value Phone Corporation acquired 70 percent of Smart Corporation's common stock on December 31, 20X4, for 5102,200. At that date, the fair value of the noncontrolling interest was $43.800. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition Phone Smart Item Corporation Corporation Cash 550.300 521.000 Accounts Receivable 90.000 64.000 Inventory 130.000 75.000 Land 60 000 10.000 110.000 Building Equiment 250.000 150.000 Acumulated Depreciation 080000 investment in Smart Corporation Total Assets $ 692,500 $ 340,000 Accounts Payable $ 152,500 $ 35,000 Mortgage Payable 250,000 180,000 Common Stock 80,000 40,000 Retained Earnings 210,000 85.000 Total Liabilities & Stockholders' Equity $ 692,500 $ 340,000 At the date of the business combination, the book values of Smart's assets and liabilities approximated fair value except for inventory, which had a fair value of $81,000, and buildings and equipment, which had a fair value of $185,000. At December 31. 20X4, Phone reported accounts payable of $12,500 to Smart, which reported an equal amount in its accounts receivable. Required: Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination 1. Basic eliminating entry (4 points) Required: Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination 1. Basic eliminating entry (4 points) 2. Inventory, building/equipment entry (4 points) 3. Account receivable/payable entry (2 points) 4. Accumulated depreciation entry (2 points)