7 E4-24 Push-Down Accounting Jefferson Company acquired all of Louis Corporation's common shares on January 2, 2003, for $789,000. At the date of combination, Louis's balance sheet appeared as follows: Assets Cash & Receivables Inventory Land Buildings (net) Equipment (net) $ 25,000 100,000 $ 34,000 165,000 60,000 250,000 320,000 Liabilities Current Payables Notes Payable Stockholders' Equity Common Stock Additional Capital Retained Earnings Total 200,000 425,000 79,000 $829,000 Total $829,000 The fair values of all of Louis's assets and liabilities were equal to their book values except for its fixed assets. Louis's land had a fair value of $75,000; the buildings, a fair value of $300,000; and the equipment, a fair value of $340,000. Jefferson Company decided to employ push-down accounting for the acquisition of Louis Cor- poration. Subsequent to the combination, Louis continued to operate as a separate company. Required a. Record the acquisition of Louis's stock on Jefferson's books. b. Present any entries that would be made on Louis's books related to the business combination, assuming push-down accounting is used. c. Present, in general journal form, all elimination entries that would appear in a consoli- dation worksheet for Jefferson and its subsidiary prepared immediately following the combination