Pop Corporation acquired an 70% interest in Son Corporation for $332,500 on January 1, 20X4 when Son's stockholders' equity consisted of $200,000 capital stock and $70,000 retained earnings. The excess cost over book value acquired was allocated to inventory that was overvalued by $40,000 and sold in 20X4, to equipment that was undervalued by $80,000 and to goodwill. The undervalued equipment had a 4-year remaining useful life.

Pop regularly sells inventory to Son at 120% of cost. Intercompany sales were $190,000 in 20X5 and $120,000 in 20X6. Son's inventory included $36,000 of this merchandise at 12/31/20X5 and $24,000 of this merchandise at 12/31/20X6.

On April 1, 20X4 Son sold Pop a building for $120,000. Son had originally paid $150,000 for the building and had accumulated depreciation as of the date of sale of $90,000. Pop is depreciating the building at a rate of $20,000 per 12-month period.

During 20X4 Son sold land for which it had paid $40,000 to Pop for $58,000. Pop resold the land to outsiders during 20X6 for $72,000

Prepare Consolidation Working Papers elimination and adjustment journal entries.

Reference	Account Titles			Debits	Credits
(optional)	Use account titles as provided on worksheet, as applicable
	Debit account titles are to be listed along the left margin
		Credit account titles are indented along this margin