1. On December 31, 20X8, Defoe Corporation acquired 90 percent of Crusoe Company's common stock for $117,000 cash. The fair value of the noncontrolling interest at that date was determined to be $13,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

	Defoe Corporation	Crusoe Company
Cash	$90,000	$20,000
Accounts Receivable	80,000	35,000
Inventory	100,000	40,000
Land	40,000	60,000
Buildings and Equipment	300,000	100,000
Less Accumulated Depreciation	(100,000)	(40,000)
Total Assets	$614,000	$215,000
Accounts Payable	$120,000	$30,000
Mortgage Payable	200,000	100,000
Common Stock	50,000	25,000
Retained Earnings	244,000	60,000
Total Liabilities and Stockholders' Equity	$614,000	$215,000

On that date, the book values of Crusoe's assets and liabilities approximated fair value except for inventory, which had a fair value of $50,000, and buildings and equipment, which had a fair value of $95,000. At December 31, 20X8, Defoe reported accounts payable of $25,000 to Crusoe, which reported an equal amount in its accounts receivable. Required: Provide the eliminating entries needed to prepare a consolidated balance sheet immediately following the business combination.

a.) Book Value Calculations and Basic Consolidation Entries

b.) Excess Value (Differential) Calculations and Excess Value Reclassification Entry.

c.) Elimination Entries for Intercompany Accounts

d.) Accumulated Depreciation Elimination Entries.