EXERCISE 3-5 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, S20 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 workpa- per on December 31, 2019, assuming: (1) 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. (2) 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