Car's LTD acquired 65% of Truck's LTD for a cost of $650,000, when the equity of Truck's LTD consisted of:

Share capital $210,000

General Reserve $90,000

retain earnings $30,000

All the identifiable assets and liabilities of cars LTD were recorded at fair value except of following.

carrying value fair value

Vehicles (cost $550,000) $450,000 $490,000

Equipment $80,000 $90,000

required:

Prepare Journal Entries for Pre-Acquisition Stage i.e. Stage 1 of Recording the Pre-Acquisition Elimination and Non-controlling Interest both using Partial Goodwill Method.