2. On December 31, 2020, Parent company (A) acquired 80% of Subsidiary (B) outstanding common stocks for SR 368,000, Subsidiarys fair value of net asserts was SR 460,000. During 2021, subsidiary net income and dividends declared were 100,000 and 50,000 respectively. Begging balance for Accumulated depreciation of subsidiarys equipment amounted to SR 50,000. Parent uses non-pushdown accounting and equity method .Subsidiarys fair value of net assets were as follows (5 marks)

Book Value Element	Amount in SR
Common Stock	150,000
Retained Earning	120,000
Total		270,000
Under Or Over Valuation
Inventory	(10,000)		2 Months
Land	50,000		No Useful Life
Equipment	100,000		4 Years
Total Under Or Over Valuation		140,000
Good Will		50,000	No Useful Life
Total Under Or Over Valuation		490,000

question :

1. Pass journal entries to record basic elimination entries.