1. On January 1, 2023, Pantop Corporation acquired 85% of the outstanding common stock of Song Company for $612,000. There was no control premium.

The following information about Song Company on January 1, 2023 was available:

	Book value	Fair value
Cash	193,000	193,000
Inventory	40,000	39,500
Building	180,000	200,000
Total	413,000	432,500
Accounts Payable	3,000	3,000
Common Stock	140,000
Add. Paid-in Capital	150,000
Retained Earnings	120,000
Total	413,000

Pantop uses the complete equity method to account for its investment in Song. During 2023, Song had a net income of $72,000. The remaining useful life of the building was five years with no salvage value. Song uses straight line depreciation. Songs cost of goods sold (FIFO) was $50,000 in 2023. On December 23, 2023, Song declared and paid $48,000 cash dividend to its shareholders. Goodwill was unimpaired as of December 31, 2023.

1. Prepare journal entries for Pantop to record under the complete equity method of accounting the operating results of Song in 2023.

(ii) Prepare the working paper eliminating entries C, E, R, O and N (in journal entry format) for Pantop Corporation and subsidiary for the year ended December 31, 2023.