1. P Inc. acquired 100% of S Inc.s outstanding common stock for $ 1,500,000 cash. Divide the cost into its major elements and prepare the consolidation entices as of the acquisition date. Prepare basic elimination entry and excess value reclassification entry from the following information

	Book Value	Current Value
Cash	50,000	50,000
Account Receivable	150,000	150,000
Notes Receivable	120,000	60,000
Land	410,000	540,000
Building & Equipment	500,000	610,000
Patent	40,000	130,000
Goodwill	100,000	--
Total Assets	1370,000	1540,000
Payables & Accruals	120,000	120,000
Long Term Debt	720,000	650,000
Total Liabilities	840,000	770,000
Common Stock	130,000
Additional Paid In Capital	470,000
Retained Earnings	380,000
Total Equity	980,000