On December 31, 2020, Post company issued 20,000 shares of its $18 par common stock (current fair value $30 a share) to stockholders of Sage company for 18,000 shares of the outstanding $10 par common stock of Sage. Out of pocket costs of the business combination paid by Post on December 31, 2020, associated with SEC Registration $20,000.

Balance sheet of Post Corporation and Sage Company for the year ended December 31, 2020, prior to consummation of the business combination, follows:

Separate Financial Statements ( prior to business combination) For Year Ended December 31, 2020 Post Corp. Sage Comp Balance Sheets Assets Cash 125,000 40,000 Inventories 150,000 110,000 Other Current Assets 110,000 70,000 Plant Assets (Net) 450,000 300,000 Patent (Net) 20,000 Total Assets 835,000 540,000 Liabilities and Stockholders' Equity Income Taxes Payable 26,000 35,000 Other Liabilities 325,000 115,000 Common Stock 300,000 Common Stock , $10 par 200,000 Additional Paid-In Capital 50,000 58,000 Retained Earnings 134,000 132,000 Total Liabilities & Stockholders'Equity 835,000 540,000

On December 31, 2020, the current fair values of Sage company's identifiable assets and liabilities were the same as their carrying amounts, except for the Inventories, Plant Assets (net), and Patent (net). They were as $90,000, $365,000, $30,000, respectively.

Instructions:

1.Prepare journal entries for Post Corporation on December 31, 2020, to record the business combination with Sage Company.

2.Prepare working paper for consolidated balance sheet and related working paper elimination (journal entry format) for Post Corporation and subsidiary on December 31, 2020.