Parent Corporation paid $105,000 to acquire 75% of the common shares of Subsidiary Inc. on December 31, 2017. At that date, Parent Corporation also had an outstanding note payable to Subsidiary Inc. in the amount of $20,000.

Assume that Parent Corporation and Subsidiary Inc. had the following account balances at December 31, 2017 (immediately after the investment):

Assets:ParentSubsidiary

CorporationInc.

Cash $ 35,000$ 15,000

Note receivable from Parent Corporation20,000

Inventory120,00030,000

Investment in Subsidiary Inc.105,000

Other assets495,00065,000

Total $755,000 $130,000

Liabilities and shareholders' equity:

Accounts payable$ 15,000$10,000

Note payable to Subsidiary Inc.20,000

Common shares 500,00090,000

Retained earnings 220,00030,000

Total $755,000$130,000

Prepare the necessary eliminating journal entries that would appear on the December 31, 2014 worksheet for a consolidated balance sheet.