Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities with book values of $439,000 and $179,000, respectively, common stock outstanding of $98,000, and retained earnings of $162,000. The book values and fair values of Scrubs assets and liabilities were identical except for land, which had increased in value by $19,000, and inventories, which had decreased by $6,000.

Required:

A. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $285,000. Record the basic consolidation entry. Record the excess value (differential) reclassification entry

B. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $256,000. Record the basic consolidation entry. Record the excess value (differential) reclassification entry