Master Corporation acquired 80 percent ownership of Stanley Wood Products Company on January 1, 20X1, for $146,000. On that date, the fair value of the noncontrolling interest was $36,500, and Stanley reported retained earnings of $43,000 and had $93,000 of common stock outstanding. Master has used the equity method in accounting for its investment in Stanley.

Trial balance data for the two companies on December 31, 20X5, are as follows:

	Master Corporation					Stanley Wood Products Company
Item	Debit			Credit			Debit		Credit
Cash & Receivables	$	91,000				$	66,000
Inventory		268,000					94,000
Land		81,000					81,000
Buildings & Equipment		507,000					153,000
Investment in Stanley Wood Products Stock		178,120
Cost of Goods Sold		115,000					43,000
Depreciation Expense		21,000					11,000
Inventory Losses		11,000					6,000
Dividends Declared		38,000					23,600
Accumulated Depreciation			$	190,000				$	77,000
Accounts Payable				55,000					12,000
Notes Payable				235,240					105,600
Common Stock				290,000					93,000
Retained Earnings				304,000					83,000
Sales				202,000					107,000
Income from Subsidiary				33,880
	$	1,310,120	$	1,310,120		$	477,600	$	477,600
Additional Info:

1. On the date of combination, the fair value of Stanleys depreciable assets was $46,500 more than book value. The accumulated depreciation on these assets was $10,000 on the acquisition date. The differential assigned to depreciable assets should be written off over the following 10-year period.

2. There was $12,000 of intercorporate receivables and payables at the end of 20X5.

b.	Prepare all consolidation entries needed to prepare consolidated statements for 20X5. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record basic consolidation entry.

2. Record the amortized excess value reclassification entry.

3. Record the excess value (differential) reclassification entry.

4. Record the entry to eliminate the intercompany accounts.