Post Corporation paid $330,000 cash for 75% of the outstanding common stock of Soft Company on January 1, 2020. There was no control premium and the fair value of the noncontrolling interest was $110,000 on January 1, 2020. Differences between book value and fair value of the net identifiable assets of Soft Company on January 1, 2020, were limited to the following:

Book value Fair value

Inventories $ 25,000 $ 35,000

Building (net) 175,000 173,000

Required:

(i) Prepare the working paper elimination entries E and R (in journal entry format) for Post Corporation and subsidiary on January 1, 2020.

(ii) Complete the following working paper:

Working paper for consolidated balance sheet on date of business combination, January 1, 2020

	Post Dr (Cr)	Soft Dr (Cr)	Adjustments & Eliminations		Consolidated Dr (Cr)
			Debits	Credits
Cash	20,000	30,000
Inventories	170,000	25,000
Investment in Soft	330,000
Building (net)	230,000	175,000
Accounts payable	(120,000)	(110,000)
Common stock	(380,000)	(25,000)
Add. paid-in capital	(100,000)	(30,000)
Retained earnings	(150,000)	(65,000)
Total	0	0