Phone Corporation acquired 70 percent of Smart Corporations common stock on December 31, 20X4, for $102,200. At that date, the fair value of the noncontrolling interest was $43,800. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

	Phone					Smart
Item	Corporation					Corporation
Cash		$	50,300				$	21,000
Accounts Receivable			90,000					44,000
Inventory			130,000					75,000
Land			60,000					30,000
Buildings & Equipment			410,000					250,000
Less: Accumulated Depreciation			(150,000	)				(80,000	)
Investment in Smart Corporation			102,200
Total Assets		$	692,500				$	340,000
Accounts Payable		$	152,500				$	35,000
Mortgage Payable			250,000					180,000
Common Stock			80,000					40,000
Retained Earnings			210,000					85,000
Total Liabilities & Stockholders Equity		$	692,500				$	340,000

At the date of the business combination, the book values of Smarts assets and 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, 20X4, Phone reported accounts payable of $12,500 to Smart, which reported an equal amount in its accounts receivable.

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

1. Record the basic consolidation entry

2. Record the excess value reclassification entry

3. Record the entry to eliminate the intracompany accounts

4. Record the optional accumulated depreciation consolidation entry

(What standard entry could replace "differential"?)