Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $189,000. The trial balances for the two companies on December 31, 20X7, included the following amounts:

	Prince Corporation									Sword Company
Item	Debit				Credit					Debit				Credit
Cash		$	89,000								$	33,000
Accounts Receivable			55,000									60,000
Inventory			180,000									102,000
Land			87,000									28,000
Buildings and Equipment			498,000									162,000
Investment in Sword Company			236,000
Cost of Goods Sold			498,000									259,000
Depreciation Expense			21,000									11,000
Other Expenses			56,000									56,000
Dividends Declared			69,000									24,000
Accumulated Depreciation						$	136,000								$	55,000
Accounts Payable							66,000									26,000
Mortgages Payable							185,000									122,000
Common Stock							295,000									41,000
Retained Earnings							343,000									91,000
Sales							693,000									400,000
Income from Sword Company							71,000
		$	1,789,000			$	1,789,000				$	735,000			$	735,000

Additional Information

1. On January 1, 20X7, Sword reported net assets with a book value of $132,000. A total of $24,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7.
2. Swords depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment.
3. Prince used the equity-method in accounting for its investment in Sword.
4. Detailed analysis of receivables and payables showed that Sword owed Prince $21,000 on December 31, 20X7.

• Record the optional accumulated depreciation consolidation entry.

• accumulated depreciation $
• buildings & equipment $