Joey Co. spent $250,000 to acquire all of Legoria Cos common stock on January 1, 2014. On December 31, 2016, the trial balances of the two companies were as follows:

	Joey Co.		Legoria Co
	DR.	CR.	DR.	CR
Item
Cash	70,000		50,000
Accounts Receivable	120,000		53,000
Land	65,000		70,000
Building and equipment	500,000		350,000
Investment in Legoria	294,000
Cost of Goods Sold	470,000		130,000
Depreciation Expense	35,000		18,000
Other Expenses	57,000		60,000
Dividends Declared and paid	30,000		12,000
Accumulated Depreciation		265,000		93,000
Accounts Payable		76,000		17,000
Taxes Payable		54,000		68,000
Notes Payable		100,000		85,000
Common Stock		200,000		100,000
Retained Earnings 1/1/2016		292,000		120,000
Sales		610,000		260,000
Equity in Earnings of Legoria		44,000

Legoria Company reported Retained Earnings of $100,000 at the date of acquisition. At the date of the acquisition, Buildings and Equipment were undervalued by $40,000 with a remaining life of 10 years from the date of acquisition. ON December 31, 2016, Legoria owed Joey $2,500. Joey Cos Management concluded that Goodwill related to its acquisition of Legoria Co. was impaired and had a carrying value of $6,000 at December 31, 2016

Required:

1). Give all of the journal entries that Joey Co. would make on ITS books to account for its investment in Legoria Co during 2016.

2). Give all of the Consolidation [Elimination entries] needed to prepare Consolidated Financial Statements for the year ended December 31, 2016.