Phone Corporation acquired 70 percent of Smart Corporation's common stock on December 31, 20X4, for $95,200. At that date, the fair value of the noncontrolling interest was $40,800. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Smart Corporation Total Assets Accounts Payable Phone Corporation $ 64,300 92,000 136,000 Smart Corporation $ 21,000 46,000 83,000 78,000 45,000 420,000 254,000 (156,000) 95,200 (75,000) Mortgage Payable Common Stock Retained Earnings $ 729,500 $ 133,500 331,000 63,000 202,000 $374,000 $ 34,000 225,000 39,000 76,000 Total Liabilities & Stockholders' Equity $ 729,500 $374,000 At the date of the business combination, the book values of Smart's assets and liabilities approximated fair value except for inventory, which had a fair value of $89,000, and buildings and equipment, which had a fair value of $194,000. At December 31, 20X4, Phone reported accounts payable of $14,200 to Smart, which reported an equal amount in its accounts receivable. b. Prepare a consolidated balance sheet worksheet. (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.) Assets Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Smart Corporation PHONE CORPORATION AND SUBSIDIARY Consolidated Balance Sheet December 31, 20X4 Consolidation Entries Phone Corp. Smart Corp. DR CR Consolidated Total Assets $ 0 $ 0 $ 0 $ 0 $ 0 Liabilities and Equity Accounts payable Mortgage payable Common stock Retained earnings NCI in NA of Smart Corporation Total Liabilities and Equity $ 0 $ 0 0 0 0