P Corporation acquired all the voting stock of S Company for $500,000 on January 1, 2019 when S had Capital Stock of $300,000 and Retained Earnings of

$150,000. The book value of S assets and liabilities were equal to the fair value except for the plant assets. Its fair value less than its book value by $ 20,000 , plant assets fully depreciated on a straight-line basis over a 10-year period. And inventory its fair value is 30,000 and fully sold to third party during the year ,the financial statements for two companies for the year ended 2019 as follow

Required:

1-Record the elimination entry in 31/12/2019

2-prepare the consolidation working papers for the year ended December 31,2019

	P	S
Sales	500,000	400,000
Income from S	??
Cost of sales	(350,000)	(200,000)
Other expenses	(100,000)	(60,000)
Net income	??	140,000
retained earnings 1/1	300,000	150,000
Net income	??	140,000
Dividends	0	(70,000)
Retained earnings 31/12	??	220,000
Balance sheet
Inventory	0	25,000
Other current assets	210,000	300,000
Plant assets-net	200,000	425,000
Investment in S company	??
Total assets	975,000	75,000
Liabilities .&equity
A/P	290,000	230,000
Capital stock	200,000	300,000
Retained earnings	??	220,000
Total liabilities &equity	975,000	750,000