On January 1, 2011, Polo Company purchased 1000% of the common stock of Save Company for $40,000 shares of its $10 par value common stock with a market price of 17.50 per share. Polo incurred cash expenses of 20,000 for registering and issuing the the common stock. THe stockholders' equity section of the two companies balance sheets on December 31, 2010 were:

Polo

Common stock, $10 par value: $350,000

Other Contributed Capital: $590,000

Retained earnings: $380,000

A- Prepare the journal entry on the books of Polo company to record the purchase of the common stock of save Company and related expenses.

B-Prepare the elimiation entry required for the preparation of a consolidated balance sheet workpaper on the date of acquistion.