Larissa Company acquired Tara Inc. on January 1, 2016. On January 1, 2016 all of Tara's assets and abilities had fair values equal to book value except for the following

land was undervalued by $30,000

buildings were overvalued by $45.000 120-year remaining useful life)

equipment was undervalued by 590,000 15-year remaining useful life)

In addition, Tara had internally developed a customer list with an appraised value of $150,000 and a 10-year remaining useful life. Larissa originally acquired Tara at the fair value of its net identifiable assets that equaled $1,150,000

The following are selected accounts for Larissa Company and Tara, Inc. as of December 31, 2020 (Larissa Investment in Tara and Equity in Tara's Income accounts have been omitted). Credit balances are indicated by parentheses:

	Larissa	Tara
Revenues	(900,000)	(375,000)
Cost of Goods Sold	420,000	150,000
Depreciation Expense	180,000	75,000
Retained Earnings, Beginning	(1,135,000)	(900,000)
Dividends Paid	195,000	60,000
Current Asset	300,000	1,035,000
Land	450,000	135,000
Building (net)	750,000	210,00
Equipment (net)	300,000	375,000
Liabilities	(600,000)	(465,00)
Common Stock	(450,000)	(60,000)
Additional Paid-in Capital	(75,000)	(240,000)

A.) Assume Larissa uses the equity method and prepare consolidation entries for 2020.

Entries: S, A, I, D, E, & C