Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $199,000. 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		$	88,000								$	43,000
Accounts Receivable			69,000									74,000
Inventory			180,000									118,000
Land			86,000									38,000
Buildings and Equipment			497,000									154,000
Investment in Sword Company			258,000
Cost of Goods Sold			497,000									254,000
Depreciation Expense			24,000									14,000
Other Expenses			66,000									66,000
Dividends Declared			59,000									24,000
Accumulated Depreciation						$	137,000								$	70,000
Accounts Payable							68,000									28,000
Mortgages Payable							198,000									125,000
Common Stock							282,000									47,000
Retained Earnings							374,000									95,000
Sales							682,000									420,000
Income from Sword Company							83,000
		$	1,824,000			$	1,824,000				$	785,000			$	785,000
On January 1, 20X7, Sword reported net assets with a book value of $142,000. A total of $24,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7. Sword’s 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. Prince used the equity method in accounting for its investment in Sword. Detailed analysis of receivables and payables showed that Sword owed Prince $23,000 on December 31, 20X7. Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for 20X7. Questions 1. Record the basic consolidation entry. 2. Record the amortized excess value reclassification entry. 3. Record the excess value (differential) reclassification entry. 4. Record the entry to eliminate the intercompany accounts. 5. Record the optional accumulated depreciation consolidation entry.