1. Platt Corporation paid $87,500 for a 70% interest in Suve Corporation on January 1, 2019, when Suve's Capital Stock was $70,000 and its Retained Earnings $30,000. The fair values of Suve's identifiable assets and liabilities were the same as the recorded book values on the acquisition date. Trial balances at the end of the year on December 31, 2019 are given below:

Platt Suve

Cash $4,500 $20,000

Accounts Receivable 26,000 30,000

Inventory 100,000 80,000

Investment in Suve 87,500

Cost of Goods Sold 60,000 40,000

Operating Expenses 22,000 37,000

Dividends 15,000 10,000

$315,000 $217,000

Liabilities $47,000 $27,000

Capital stock, $10 par value 100,000 70,000

Additional Paid-in Capital 10,000

Retained Earnings 31,000 30,000

Sales Revenue 120,000 90,000

Dividend Income 7,000 0

$315,000 $217,000

Required:

Give the elimination entry or entries needed to prepare consolidated

Prepare consolidated income statement and statement of retained earnings for Platt and Subsidiary for the year ended December 31, 2019.