Mason Corporation acquired 100 percent ownership of Best Company on February 12, 20X9. At the date of acquisition, Best Company reported assets and liabilities with book values of $431,000 and $165,000, respectively, common stock outstanding of $80,000, and retained earnings of $186,000. The book values and fair values of Bests assets and liabilities were identical except for land, which had increased in value by $21,000, and inventories, which had decreased by $8,000.

a.

Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Mason acquired its ownership of Best for $291,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the basic consolidation entry

2. Record the excess value (differential reclassifcation entry)

b.

Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Mason acquired its ownership of Best for $262,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record the basic consolidation entry. 2. Record the excess value (differential) reclassification entry.