Dad Corporation acquired 100% ownership of Son Company on January 1, 20X8, for $128,000. At that date, the fair value of Sons buildings and equipment was $20,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis; the balance of Sons accumulated depreciation was $30,000 on the date of acquisition. Dad's management concluded on December 31, 20X8 that goodwill involved in its acquisition of Son shares had been impaired and the correct carrying value was $2,500.

Trial balance data for Dad and Son on December 31, 20X8 are as follows:

		Dad Corporation		Son Company
Item		Debit	Credit	Debit	Credit
Cash		$19,500		$21,000
Accounts receivable		70,000		12,000
Inventory		90,000		25,000
Land		30,000		15,000
Buildings & Equipment		350,000		150,000
Investment in Son Company		128,500
Cost of Goods Sold		125,000		110,000
Wage Expense		42,000		27,000
Depreciation Expense		25,000		10,000
Interest Expense		12,000		4,000
Other Expense		13,500		5,000
Dividends Declared		30,000		16,000
Accumulated Depreciation			$145,000		$40,000
Accounts Payable			45,000		16,000
Wages Payable			17,000		9,000
Notes Payable			150,000		50,000
Common Stock			200,000		60,000
Retained Earnings			102,000		40,000
Sales			260,000		180,000
Income from Son Company			16,500
		$935,500	$935,500	$395,000	$395,000

B) Prepare the consolidation entries for 20X8