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Elimination entries and consolidated balance sheet The following are the balance sheets for Plate and Salad immediately prior to Plate s September 1 , 2

Elimination entries and consolidated balance sheet
The following are the balance sheets for Plate and Salad immediately prior to Plates September 1,20X1, acquisition of Salad:
Plate Salad
Assets
Cash $500,000 $100,000
Accounts receivable 50,00020,000
Inventory 100,00030,000
Land 50,00010,000
Bldg. & equip. net 200,000100,000
Totalassets $900,000 $260,000
Liabilities & equity
Accounts payable 40,00080,000
Bonds payable 200,0000
Common stock & APIC 300,000100,000
Retained earnings 360,00080,000
Totalliabilities & equity 900000260000
Consider the following cases:
Case 1
Plate buys 100% of Salads common stock for $180,000 cash. The fair value of Salads assets and liabilities equals their book value.
Case 2
Plate buys 100% of Salads common stock for $210,000 cash. The fair value of Salads land is $20,000 and of its buildings and equipment is $110,000. All other fair values equal book values.
Required:
Question 1: Prepare the September 1,20X1, journal entry on Plates books to record the acquisition of Salad.
Answer 1:
Question 2: Prepare the elimination entries needed to prepare a consolidated balance sheet immediately after the acquisition.
Answer 2:
Question 3: Prepare the consolidated balance sheet immediately after the acquisition.
Answer 3:

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