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

A/P 3,000 3,000

CS 140,000

Add. PIC 150,000

RE 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.

(i) 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.