On January 1, 2018, Puget Sound Corporation bought 100% of the stock of Spokane Corporation. Puget Sound purchased it by issuing 500,000 additional shares of their $5 par value stock, which at the time was worth $20 per share. Puget Sound also paid for it in part by paying $300,000.

Other pertinent information:

Stockholders equity of Spokane at acquisition was $7,200,000.

Fair value of previously unrecorded identifiable intangibles (5-year life): $2,000,000.

Goodwill and identifiable intangibles are not impaired in 2018

Spokanes net income in 2018: $3,000,000.

Spokanes dividends paid in 2018: $1,000,000.

On December 31, 2018, Puget Sound owed Spokane $16,000, and Spokane owed Puget Sound $22,000.

Puget Sound's CEO fired Spokane's CEO on June 1, 2018.

Spokane introduced a new product on August 31, 2018.

Puget Sound uses the complete equity method to record its investment in Spokane.

By December 31, 2018, the fair market value of identifiable intangibles on Spokanes books was worth $3,000,000.

The following is the trial balance data for Puget Sound and Spokane on December 31, 2018:

Puget Sound Spokane

Cash $ 290,000,000 $ 10,000,00

Accounts Receivable 410,000,000 30,000,000

Inventory 250,000,000 5,000,000

Land 300,000,000 7,000,000

Buildings & Equipment-Net 1,100,000,000 33,000,000

Identifiable Intangible Assets 100,000 0

Investment in Spokane 11,900,000 -----------

Cost of Goods Sold 750,000,000 22,000,000

Depreciation Expense 90,000,000 40,000,000

Amortization Expense 10,000,000 0

Other Expenses 20,200,000 1,000,000

Dividends Declared 100,000,000 1,000,000

Accounts Payable 400,000,000 10,000,000

Long-Term Liabilities 899,600,000 65,800,000

Common Stock 800,000,000 7,000,000

Additional Paid in Capital 70,000,000 150,000

Retained Earnings, Jan. 1, 2018 250,000,000 50,000

Sales 910,000,000 66,000,000

Equity in Income from Spokane 2,600,000 ----------

$0 $0

Required:

Prepare the journal entries for Puget Sound regarding its investment in Spokane during 2018.

Prepare the consolidation eliminating entries made at December 31, 2018.

Prepare a workpaper for the consolidated workpapers [Balance Sheet, Income Statement, & Retained Earnings] of Puget Sound and Spokane as of December 31, 2018. Show all necessary elimination entries in their proper columns. Use a coding system for each elimination entry. On the worksheet itself, every elimination entry should be identified separately with its own number or a letter.