Phone Corporation acquired 70 percent of Smart Corporation's common stock on December 31, 20X4, for $98,700. At that date, the fair value of the noncontrolling interest was $42,300. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: 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 $90,000, and buildings and equipment, which had a fair value of $198,000. At December 31,204, Phone reported accounts payable of $13,400 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list transaction list \begin{tabular}{|c|c|c|c|c|c|} \hline & No & Entry & Accounts & Debit & Credit \\ \hline \multirow[t]{4}{*}{>} & A & 1 & Common stock & 35,000 & \\ \hline & & & Retained earnings & 85,000 & \\ \hline & & & Investment in Smart Corporation & & 85,000 \\ \hline & & & NCl in Net assets of Smart Corporation & & 35,000 \\ \hline & B & 2 & Inventory & & \\ \hline & & & Buildings and equipment & & \\ \hline & & & Investment in Smart Corporation & & \\ \hline & & & NCl in Net Income of Smart Corporation & & \\ \hline \multirow[t]{2}{*}{