Powder Company spent $240,000 to acquire all of Sawmill Corporation's stock on January 1, 20X2. The balance sheets of the two companies on December 31, 20X3, showed the following amounts:

	Powder Company					Sawmill Corporation
Cash		$	30,000				$	20,000
Accounts Receivable			100,000					40,000
Land			60,000					50,000
Buildings & Equipment			500,000					350,000
Less: Accumulated Depreciation			(230,000	)				(75,000	)
Investment in Sawmill Corporation			252,000
		$	712,000				$	385,000
Accounts Payable		$	80,000				$	10,000
Taxes Payable			40,000					70,000
Notes Payable			100,000					85,000
Common Stock			200,000					100,000
Retained Earnings			292,000					120,000
		$	712,000				$	385,000

Sawmill reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition. Assume Sawmill's accumulated depreciation on the acquisition date was $25,000. Required: a. Prepare the appropriate consolidation entry or entries needed to prepare a consolidated balance sheet as of December 31, 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare a consolidated balance sheet worksheet as of December 31, 20X3. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

Consolidation Worksheet Entries A B Record the basic consolidation entry. Note: Enter debits before credits. Accounts Debit Credit Event 1 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Accounts Debit Credit Event 2 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries