Phone Corporation acquired 70 percent of Smart Corporations common stock on December 31, 20X4, for $98,000. At that date, the fair value of the noncontrolling interest was $42,000. 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		$	62,300				$	21,000
Accounts Receivable			95,000					51,000
Inventory			136,000					90,000
Land			71,000					39,000
Buildings & Equipment			425,000					254,000
Less: Accumulated Depreciation			(162,000	)				(79,000	)
Investment in Smart Corporation			98,000
Total Assets		$	725,300				$	376,000
Accounts Payable		$	151,500				$	26,000
Mortgage Payable			304,800					231,000
Common Stock			65,000					40,000
Retained Earnings			204,000					79,000
Total Liabilities & Stockholders Equity		$	725,300				$	376,000

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 $96,000, and buildings and equipment, which had a fair value of $190,000. At December 31, 20X4, Phone reported accounts payable of $14,400 to Smart, which reported an equal amount in its accounts receivable. Required: a. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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.)