Prepare journal entries to eliminate Porter Company's investment in Sewell Company in the preparation of a consolidated balance sheet at the date of acquisition for each of the following independent cases

Sewell Company Equity Balances

Cash Percent of Stock Owned Investment Cost Common Stock

a. 90 $675,000 $450,000

b. 80 318,000 620,000

Other Contributed Capital Retained Earnings

a. $180,000 $75,000

b. 140,000 20,000

For (a), any difference between book value of net assets acquired and the value implied by the purchase price relates to subsidiary property, plant, and. In case (b) assume that all book values and fair values are the same.