Peanut Company acquired 90 percent of Snoopy Companys outstanding common stock for $306,000 on January 1, 20X8, when the book value of Snoopys net assets was equal to $340,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of January 1, 20X8, follow:

	Peanut Company					Snoopy Company
Assets
Cash		$	60,000				$	25,000
Accounts Receivable			55,000					35,000
Inventory			107,000					78,000
Investment in Snoopy Company			306,000
Land			229,000					104,000
Buildings and Equipment			711,000					203,000
Accumulated Depreciation			(399,000	)				(7,000	)
Total Assets		$	1,069,000				$	438,000
Liabilities and Stockholders Equity
Accounts Payable		$	73,000				$	25,000
Bonds Payable			186,000					73,000
Common Stock			483,000					186,000
Retained Earnings			327,000					154,000
Total Liabilities and Equity		$	1,069,000				$	438,000

Required: a. Prepare the journal entry on Peanut's books for the acquisition of Snoopy on January 1, 20X8.

b. Prepare a consolidation worksheet on the acquisition date, January 1, 20X8. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

c. Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8. (Amounts to be deducted should be indicated by a minus sign.)