EXERCISE 35 Treasury Stock Held by Subsidiary LO 8 Pool Company purchased 90% of the outstanding common stock of Spruce Company on December 31, 2019, for cash. At that time the balance sheet of Spruce Company was as follows: Current assets $1,050,000 Plant and equipment 990,000 Land 170,000 Total assets $2,210,000 Liabilities $820,000 Common stock, $20 par value 900,000 Other contributed capital 440,000 Retained earnings 150,000 Total 2,310,000 Less treasury stock at cost, 5,000 shares 100,000 Total equities $2,210,000 Required: Prepare the elimination entry required for the preparation of a consolidated balance sheet workpaper on December 31, 2019, assuming: The purchase price of the stock was $1,400,000. Assume that any difference between the book value of net assets and the value implied by the purchase price relates to subsidiary land. The purchase price of the stock was $1,160,000. Assume that the subsidiary land has a fair value of $180,000, and the other assets and liabilities are fairly valued.