Henry Company obtained 100 percent of Ahmad Company's on January 1, 20X6. At the date of acquisition, Ahmad Company reported assets and liability with book values of $840,000 and $330,000, respectively. Common stock outstanding of $160,000and retained earnings of $350,000. The book values and fair values of Ahmads assets and liabilities were identical except for land, which had increased in value by $40,000, and inventories, which has decreased by $14,000.

Give the consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Irbid acquired its ownership of Ahmad for $502,000.

(Solving and entries)