Apple corporation acquired 80% of Amazon Company's voting stock for $36,250 on January 1, 2019. The reported equity of Amazon on January 1, 2019 was $3,000 in common stock and $9,000 in retained earnings. The fair value of the noncontrolling interest was $7,750. Amazon's assets and liabilities were reported at fair value at the date of acquisition, except for these items:

Land- book value: 2,000 fair value: 8,000

Buildings- book value: 8,000 fair value: 3,000

Identifiable intangibles- Book Value: 0 fair value: 10,000

The buildings had a remaining useful life of 10 years, and the identifiable intangibles are amortized over 5 years as of the date of acquisition, both straight-line. Goodwill is impaired by $2,000 in 2019 and is unimpaired in 2020. The land, buildings, and identifiable intangibles are still held by Arnazon.

It is now December 31, 2020 (two years since the acquisition took place). The trial balances of Apple and Amazon are in the consolidation working paper below. Information on intercompany transactions is as follows:

1. On January 2, 2019, Apple sold Amazon equipment for a price of $800. The equipment had a book value of $300 at the time of sale, and a remaining life of 5 years, straight-line.
2. Amazon sells merchandise to Apple on a continuing basis, at a markup of 20% on cost. Apple's 2020 beginning inventory contains $90 in goods purchased from Amazon. Apple's 2020 ending inventory contains $120 in goods purchased from Amazon. Total intercompany sales for 2020 were $3,000.

Required

a. Complete the working paper below to consolidate the December 31, 2020 trial balances of Apple and Amazon. Clearly label your eliminating entries (E), (R), (C). (0), (N) and (I) and journal entries