4. On January 1, 2009, R Corp. issued shares of its common stock to acquire all of the outstanding common stock of S Inc. S's book value was only $180,000 at the time, but R issued 12,000 shares having a par value of $1 per share and a fair value of $20 per share. R was willing to convey these shares because it felt that buildings (10-year life) were undervalued on Ss records by $60,000 while equipment (five-year life) was undervalued by $25,000. Any consideration transferred over fair value of identified net assets acquired is assigned to goodwill. The Trial Balances for Rand S as of December 31, 2012 are presented below: Revenues Expenses Equity in subsidiary earnings Net income Rand Corp $ 372.000 (264,000) 25,000 $ 133.000 Spaulding Inc $108.000 (72.000 0 S 36.000 Retained earnings, January 1, 2012 Net income (above) Dividends pard Retained earnings December 31, 2012 $ 765.000 $102.000 133.000 36,000 (84.000 (24.000) S S14.000 SI14.000 Current assets Investment in Spaulding Ine Buildings (net Equipment (net) Total assets $ 150,000 242.000 525.000 389,250 S1306250 $ 22.000 0 85.000 129.000 $236.000 0 Liabilities $ $2.250 $ 50.000 Common stock 360.000 72.000 Additional paid-in capital 50.000 Retained earnings. December 31, 2012 (above) S14,000 117.000 Total liabilities and stockholders' equity $1.306.250 $236.000 Required: Prepare the December 31, 2012 consolidation entries for this business combination assuming the parent uses the: a. Equity method b. What C entry will be on the 2013 consolidation worksheet if R Corp uses the Partial'equity method to account for this investment; the initial value method