On June 10, 20X8, Private Corporation acquired 60 percent of Secret Companys common stock. The fair value of the noncontrolling interest was $28,000 on that date. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows:

Private Corp. Secret Company

Item Book Value Book Value Fair Value

Cash $ 45,800 $ 12,000 $ 12,000

Accounts Receivable 37,000 17,000 17,000

Inventory 88,000 27,000 32,000

Buildings & Equipment (net) 125,000 66,000 86,000

Investment in Secret Company 42,000 Total $ 337,800 $ 122,000 $ 147,000

Accounts Payable $ 18,000 $ 3,000 3,000

Bonds Payable 207,800 74,000 74,000

Common Stock 46,000 14,000

Retained Earnings 66,000 31,000

Total $ 337,800 $ 122,000 $ 77,000

Required: a. Record the consolidation entries required to prepare a consolidated balance sheet immediately after the purchase of Secret Company shares.

record the basic consolidation entry.

record the excess value (differential) reclassification entry.