Packer Corporation buys 85 percent of the voting stock of Slattery Inc. on January 1, 2023, at an acquisition cost of $5,000,000. The fair value of the noncontrolling interest at the date of acquisition is $600,000. Slatterys equity at the date of acquisition consists of $1,000,000 in capital stock and a retained deficit of $1,250,000. The book values of Slatterys reported net assets approximate fair value, except for property with a 20 -year remaining life that is overvalued by $750,000. Slattery also has $2,500,000 in indefinite-lived unreported developed technology. Slattery reports a net loss of $50,000 for 2023. The developed technology and goodwill related to this acquisition are unimpaired in 2023. Packer uses the complete equity method to account for its investment in Slattery on its own books.

c. Prepare eliminating entries (C), (E), (R), (O), and (N) necessary to consolidate the separate trial balances of Packer and Slattery at December 31, 2023.

		Debit	Credit
(C)	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	To eliminate current year's equity method entries
(E)	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	To eliminate the subsidiary's equity accounts
(R)	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	To revalue subsidiary's assets and liabilities to fair value
(O)	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	To write off the revaluations for the current year
(N)	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	Capital stockDeveloped technologyDepreciation expenseGoodwillEquity in net loss of SlatteryInvestment in SlatteryNoncontrolling interest in net lossNoncontrolling interest in SlatteryPropertyRetained deficit, 1/1		Answer
	To recognize noncontrolling interest in net income