Carson, Inc., acquires 80 percent of the outstaniding common stock of Gardena corporation on January 1, 2020, in exchange for $900,000 cash. At the acquisition date, Gardena's total fair value, including the noncontrolling interest, was assessed at $1,125,000. Also at the acquisition date, Gardena's book value was $690,000. Several individual items on Gardena's financial records had fair values that differed from their book values as follows:

								Book value		Fair value
Trademark (indefinite life)								$360,000		$383,000
Property and equipment (net, 8-year remaining useful life)								290,000		330,000
Patent (14-year remaining useful life)								132,000		272,000

For internal reporting purposes, Carson, inc., employs the equity method to account for this investment. The following account balances are for the year
ending December 31, 2020, for both companies. At year-end, there were no intra-entity receivables or payables.

5. The working paper entry to eliminate Carsons investment in Gardena at December 31, 2020 (only consolidation JE S and A)
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6. What is the consolidated balance for investment at December 31, 2020?
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7. What is the consolidated balance for equiy in income of Gardena at December 31, 2020?
Your answer: