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 Deccember 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
Totals	$ 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
Totals	$ 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).

(a) Consolidation Worksheet Entries

1) Record the basic consolidation Entry

2) Record the excess value (differential) reclassification entry.

3) Record the optional accumulated depreciation consolidation entry.

(b) Prepare a consolidated balance sheet worksheet as of December 31, 20X3.

			Consolidation Entries
	Powder Co.	Sawmill Corp.	DR	CR	Consolidated
Assets
Cash
Accounts receivable
Land
Buildings & Equipment
Less: Accumulated depreciation
Investment in Sawmill Corporation
Total Assets
Liabilities & Stockholder's Equity
Accounts payable
Taxes payable
Notes payable
Common stock
Retained earnings
Total Liabilities & Equity