E3.1 Help Please!

Eliminating Entries, Goodwill

Polaris Company acquires all of the stock of SSC, Inc. for $60 million in cash. At the date of acquisition, SSCs current assets had a book value of $20 million, its noncurrent assets had a book value of $80 million, and its liabilities had a book value of $90 million. It is determined that the book values of SSCs net assets approximate fair value at the date of acquisition. SSCs shareholders equity consists of capital stock of $2 million, retained earnings of $9 million (credit balance), and treasury stock of $1 million.

Required:

Prepare the eliminating entries necessary to consolidate the balance sheet accounts of Polaris and SSC at the date of acquisition.