1. Norton University

2. Prep pays $450,000 for 100% interest in Snap on January 1 2006, when Snap stockholders equity consists of $250,000 capital stock and $160,000 retained earnings. The excess of investment cost is allocated to Goodwill:

3. Asset	Prep	Snap	Debit	Credit	Consolidation
   Cash	100,000	150,000			250,000
   Account Receivable	50,000	60,000			110,000
   Other Current Asset	120,000	120,000			240,000
   Equipment, Net	200,000	300,000
   Building Net	50,000	80,000			130,000
   Land	150,000	250,000
   Total Asset	670,000	960,000
   Liabilities
   Account Payable	250,000	300,000
   Note Payable	150,000	250,000
   Total Liabilities	400,000	550,000
   Shareholder Equity
   Capital	200,000	250,000
   Retained Earning	70,000	160,000
   Total S.E	270,000	410,000

4. Prepare the consolidation