Phone Corporation acquired $70$ percent of Smart Corporation$$s common stock on December $31,20$X$4,$ for $$102,200.$ At the date, the fair value of the noncontrolling interest was $$43,800.$ Data from the balance sheets of the two companies include the following amounts as of the date of acquisition:

Item Phone Corporation Smart Corporation

Cash $50,30021,000$

Accounts Receivable $90,00044,000$

Inventory $130,00075,000$

Land $60,00030,000$

Buildings & Equipment $410,000250,000$

Less: Accumulated Depreciation $(150,000)(80,000)$

Investment in Smart Corporation $102,200$

Total Assets $692,500340,000$

Accounts Payable $152,50035,000$

Mortgage Payable $250,000180,000$

Common Stock $80,00040,000$

Retained Earnings $210,00085,000$

Total Liabilities & Stockholders$$ Equity $692,500340,000$

At the date of the business combination, the book values of Smart$$s asserts ad liabilities approximated fair value except for inventory, which had a fair value of $$81,000,$ and buildings and equipment, which had a fair value of $$185,000.$ At December $31,20$X$4.$ Phone reported accounts payable of $$12,500$ to Smart, which reported and equal amount in its accounts receivable.

Required

a$.$ Give the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.

b$.$ Prepare a consolidated balance sheet worksheet.

c$.$ Prepare a consolidated balance sheet in good form.