On January 1, 2018, Co. P acquired 90% of Co. S for $550,000, plus $15,000 in acquisition costs. On the date of acquisition, Co. S had the following balance sheet:

Assets		Liabilities & Equity
Accounts Receivable	150,000	Current Liabilities	260,000
Inventory	180,000	Bonds Payable	250,000
Land	200,000	Common Stock, $1 Par	400,000
Buildings	550,000	PIC In Excess of Par	70,000
Acc. Deprecition (Bldg)	(100,000)	Retained Earnings	300,000
Equipment	400,000
Acc. Depreciation (Equip)	(120,000)
Goodwill	20,000
Total Assets	1,280,000	Total Liab. & Equity	1,280,000

An appraisal indicates that the following items have fair values that differed from their book values:

Accounts Receivable	140,000
Inventory	200,000
Land	200,000
Buildings	400,000
Equipment	100,000
Patent	300,000
Bonds Payable	220,000

Immediately after the purchase, Co. P had the following balance sheet:

Assets		Liabilities & Equity
Cash	50,000	Current Liabilites	200,000
Accounts Receivable	70,000	Bonds Payable	300,000
Inventory	130,000	Common Stock	150,000
Investment in Co. S	550,000	PIC Excess of Par	200,000
Land	350,000	Retained Earnings	800,000
Buildings	300,000
Acc. Depreciation (Bldg)	(50,000)
Equipment	190,000
Acc. Depreciation	(40,000)
Goodwill	100,000
Total Assets	1,650,000	Total Liab. & Equity	1,650,000

(1) Record the investment in Co. S.

(2) Prepare a value analysis schedule for the Investment in Co. S.

(3) Prepare a determination and distribution schedule for the investment in Co. S.

(4) Prepare all required elimination ertries for the January 1, 2018 consolidated worksheet in general journal form.

*Below is what I have for parts 1-3 so far, but I'm struggling with part 4 (something in 3 may be incorrect).

(1) Investment in State 550,000

Acquisition Expense 15,000

Cash 565,000

(2)

Value Analysis Schedule	Company Implied Value	Parent Price (90%)	NCI Value (10%)
Company Fair Value	611,111	550,000	61,111
Fair Value of Net Assets (exclude G/W)	860,000	774,000	86,000
Gain on Acquisition	(248,889)	(22,400)	(24,889)

(3)

D&D Schedule	Company Implied Value	Parent Price (90%)	NCI Value (10%)
Fair Value of Subsidiary	611,111	550,000	61,111
Less BV of Interest Acquired:
Common Stock	400,000
Paid-In Capital	70,000
Retained Earnings	300,000
Total SHs Equity	770,000	770,000	770,000
Interest Acquired		90%	10%
Book Value		693,000	77,000
Excess FV over BV	(158,889)	(143,000)	(15,889)
Adjustments to Identifiable Accounts:
Accounts Receivable	(10,000)	Credit
Inventory	20,000	Debit
Buildings	(50,000)	Credit
Equipment	(180,000)	Credit
Patent	300,000	Debit
Goodwill	(20,000)	Credit
Gain on Acquisition	(248,889)	Credit
Decrease on Bonds	30,000	Debit
Total	(158,889)