(1) RECORD THE BASIC CONSOLIDATION ENTRY

(2) RECORD THE EXCESS VALUE (DIFFERENTIAL) RECLASSIFICATION ENTRY

On June 10, 20X8, Private Corporation acquired 70 percent of Secret Company's common stock. The fair value of the noncontrolling Interest was $21,600 on that date. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows: Secret Company Book Value Fair Value $ 12,000 $ 12,000 17,000 17,000 27,000 32,000 59,000 79,000 Item Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Secret Company Total Accounts Payable Bonds Payable Common Stock Retained Earnings Total Private Corp. Book Value $ 35,800 42,000 93,000 131,000 50,400 $ 352,200 $ 20,000 238,200 37,000 57,000 $ 352,200 $ 115,000 $ 3,000 65,000 15,000 32,000 $ 115,000 $ 140,000 3,000 65,000 $ 68,000 Required: a. Record the consolidation entries required to prepare a consolidated balance sheet immediately after the purchase of Secret Company shares. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.)