Matthews Company obtained all of the common stock of Jackson Company on January 1, 20X1. As of that date, Jackson had the following trial balance:

	Debit	Credit
Totals	$720,000	$720,000
Accounts Payable		$60,000
Accounts Receivable	$50,000
Additional Paid-in Capital		$60,000
Buildings, net (10-year life)	$140,000
Cash	$70,000
Common Stock		$300,000
Equipment, net (8-year life)	$240,000
Inventory	$110,000
Land	$90,000
Long-term Liabilities		$180,000
Retained Earnings		$120,000
Supplies	$20,000

Any excess of cost over fair value is due to an unamortized patent (NOT goodwill) to be amortized over 10 years.

During 20X1, Jackson reported net income of $96,000 while paying dividends of $12,000. During 20X2, Jackson reported net income of $132,000 while paying $36,000 in dividends.

Assume that Matthews Co. acquired Jackson Co.s common stock for $588,000 in cash. As of January 1, 20X1, Jacksons land had a fair market value of $102,000, its buildings were valued at $188,000, and its equipment appraised at $216,000. Matthews internally accounted for this acquisition using the equity method.

Requirements:

1. Prepare a schedule showing the allocation of the acquisition-date fair value (or purchase price, if you will) to adjust Jacksons book values to fair values and annual amortization calculations for the buildings, equipment, and patent.
2. Prepare consolidation worksheet entries S, A, I, D, and E for December 31, 20X1 and December 31, 20X2.
3. This is independent of numbers (1) & (2) above. Assume that Matthews has a $100,000 account receivable from Jackson. Prepare the consolidation entry (Entry P) to eliminate this intra-entity transaction.