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Please Help with the following: Following are the account balances of Miller Company and Richmond Company as of December 31^st, 2013. The fair value of

Please Help with the following:

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Following are the account balances of Miller Company and Richmond Company as of December 31^st, 2013. The fair value of the net assets of Richmond is equal to the book value of the net assets. (Therefore, the net assets are purchased at book value.) On December 31, Miller issues 20,000 shares of its $20 par value common stock for all of the outstanding shares of Richmond Company. The market value of the stock is $30 per share. In creating this combination, Miller pays $5,000 in stock issue costs and $15,000 in accounting and legal fees. 1. Using the equity method, prepare the necessary journal entries if Richmond remains a separate legal entity. 2. Prepare eliminating entries. 3. Complete a consolidation worksheet

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