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On January 1, 2019. Portland Corporation bought 100% of the stock of Switzerland Corporation for $500,000 (with cash) The Balance Sheets of the two companies

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On January 1, 2019. Portland Corporation bought 100% of the stock of Switzerland Corporation for $500,000 (with cash) The Balance Sheets of the two companies immediately after Portland acquired (January 1, 2019) Switzerland Corporation showed the following amounts: Portland Switzerland Cash Accounts Receivable Inventory Land Buildings & Equipment - Net Patents Investment in Switzerland Total Assets $ 90,000 $110,000 160,000 40,000 500,000 290,000 1,100,000 140,000 1,000,000 420,000 100,000 500,000 0 $3,450,000 $1,000,000 Accounts Payable Bonds Payable Common Stock Additional Paid in Capital Retained Earnings S 410,000 1,040,000 1,000,000 200,000 800,000 200,000 300,000 300,000 50,000 150,000 Total Liabilities and Stockholders' Equity $3,450,000 $1,000,000 At the date of acquisition, Portland owed Switzerland S40,000. Also, on the date of acquisition the Book Value of Switzerland equaled its Fair Value. At the end of the first year of combination Portland expects a combined tax rate of 35%. Portland expects Switzerland to have net income of $80,000 in 2019. The Chief Executive Officer (CEO) of Switzerland dislikes Portland's CEO. Portland uses the equity method for its investment in Switzerland villues and Stockholders' Equity $3,450,000 $1,000,000 At the date of acquisition Portland owed Switzerland $40,000. Also, on the date of acquisition the Book Value of Switzerland equaled its Fair Value. At the end of the first year of combination Portland expects a combined tax rate of 35%, Portland expects Switzerland to have net income of $80,000 in 2019. The Chief Executive Officer (CEO) of Switzerland dislikes Portland's CEO. Portland uses the equity method for its investment in Switzerland. Required: 1. List all journal entries that Portland made to record its investment in Switzerland on the date of acquisition 2. List all Elimination Entries that would need to be made in order to prepare a workpaper for the consolidated Balance Sheet of Portland and Switzerland immediately after the combination (January 1, 2019) 3. Using Excel, prepare a workpaper for the consolidated Balance Sheet of Portland and Switzerland immediately after the combination (January 1, 2019). Show all necessary elimination entries in their proper columns. Use a coding system for each elimination entry, such as A, B, C. w

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