Pillow Corporation acquired 80 percent ownership of Sheet Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 20X7, included the following amounts:

	Pillow Corporation									Sheet Company
Item	Debit				Credit					Debit				Credit
Cash		$	38,000								$	25,000
Accounts Receivable			50,000									55,000
Inventory			240,000									100,000
Land			80,000									20,000
Buildings & Equipment			500,000									150,000
Investment in Sheet Company			202,000
Cost of Goods Sold			500,000									250,000
Depreciation Expense			25,000									15,000
Other Expenses			75,000									75,000
Dividends Declared			50,000									20,000
Accumulated Depreciation						$	155,000								$	75,000
Accounts Payable							70,000									35,000
Mortgages Payable							200,000									50,000
Common Stock							300,000									50,000
Retained Earnings							290,000									100,000
Sales							700,000									400,000
Income from Sheet Company							45,000
		$	1,760,000			$	1,760,000				$	710,000			$	710,000

Additional Information

1. On January 1, 20X7, Sheet reported net assets with a book value of $150,000 and a fair value of $191,250. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date.
2. Sheets depreciable assets had an estimated economic life of 11 years on the date of combination. Goodwill of $25,000 was recorded at the acquisition.
3. Pillow used the equity method in accounting for its investment in Sheet.
4. Detailed analysis of receivables and payables showed that Sheet owed Pillow $16,000 on December 31, 20X7

• Record the basic consolidation entry.

• B

  Record the amortized excess value reclassification entry.

• C

  Record the excess value (differential) reclassification entry.

• D

  Record the entry to eliminate the intercompany accounts.

• E

  Record the optional accumulated depreciation consolidation entry.