On January 1, 2014 MSN Corporation acquired ABC Corporation for one million shares of MSN Stock, valued at $35 per share. Professional fees connected to the acquisition were $1,000,000 and costs of registering and issuing the new shares were $300,000, both paid in cash. ABC performs vehicle maintenance service for owners of auto, truck and bus fleets. ABCs balance sheet at acquisition date was as follow:

Cash	400,000
Account receivables	2,800,000
Parts inventory	5,000,000
Equipment	17,600,000
Total Assets	25,800,000
Current Liabilities	3,100,000
Long-term Liabilities	8,600,000
Common Stocks	1,700,000
Additional Paid in Capital	3,500,000
Retained Earnings	8,900,000
Total Liabilities and Equity	25,800,000

In reviewing ABCs assets and liabilities at the acquisition date, MSN determined the following:

• On a discounted present value basis, the accounts receivables had a fair value of $2,600,000, and the long-term liabilities have a fair value of $8,000,000 with maturity of 20 years.
• The replacement cost of the parts inventory was $6,000,000.
• The turnover of short-term assets and liabilities is less than one year.
• The current replacement cost of the equipment was $19,500,000. The equipment had a 16-year life
• ABC had long-term service contracts with several large fleet owners. These contracts have been profitable; the present value of expected profits over the remaining term (10 years) of the contracts is estimated at $2,500,000. These contracts meet the criteria for recognition separately.
• ABC had a skilled and experience assembled workforce. MSN estimated that the cost to hire and train replacements would be $600,000.
• ABCs trade name is well-known among fleet owners and is estimated to have a fair value of $160,000. The estimated remaining life was 4 years.

Following are selected accounts for MSN Corporation and ABC as of December 31, 2018 (credit balances indicated by parentheses). Several assets and liabilities accounts have been omitted.

Account	MSN	ABC
Income Statement
Revenues	($7,500,000)	($7,130,000)
Cost of Service	$3,500,000	$3,275,000
Depreciation	$750,000	$1,100,000
Amortization	$300,000
Interest Expenses	$1,025,500	$800,000
Equity in ABC's income	?	$0
Net Income	?	($1,955,000)
Statement of Retained Earnings
Retained earnings 1/1/2018	($14,700,000)	($13,672,500)
Net Income (above)	?	($1,955,000)
Dividend paid	$800,000	$400,000
Retained earnings 12/31/2018	?	($15,227,500)
Balance Sheet
Cash	$3,000,000	$710,000
Account Receivable	$1,500,000	$1,500,000
Part inventory	$2,700,000	$3,800,000
Equipment (net)	$9,250,000	$6,600,000
Building	$14,300,000	$5,000,000
Investment in ABC	?
Total Assets
Current Liabilities	($5,500,000)	($2,800,000)
LT Liabilities	($3,800,000)	($6,400,000)
Common Stock	($4,750,000)	($1,700,000)
Additional paid in capital	($6,970,000)	($3,500,000)
Retained earnings 12/31/2018	?	($15,227,500)
Total liabilities and equities

ABC reported the following figures for years preceding 2018:

	2014	2015	2016	2017	2018
Net Income	$1,162,500	$1,600,000	$1,485,000	$1,650,000	$1,955,000
Dividend	$325,000	$300,000	$200,000	$300,000	$400,000

MSN uses the Equity method to account for the investment account. ABC has not issued or repurchased stocks in the past 5 years.

Required: Prepare Consolidation Worksheet for the selected accounts of MSN Corporation and ABC (i.e. consolidation adjustment entries and consolidated totals).