PROBLEM 5 On January 1, 20X7 Quick Company acquired 100 percent of Sluggish Company's stock when Sluggish reported stock of $350,000; and retained earnings of $400,000. At the date of acquisition, the book values and the fair values of Sluggish's assets and liabilities were equal. For 20X7, Sluggish reported net income of $500,000, and paid dividends of $25,000 book values as follows: assets of $1,200,000; liabilities of $450,000: common Give the eliminating entry needed on December 31, 20X7, to prepare consolidated financial statements DEBIT CREDIT ACCOUNT PROBLEM 5 On January 1, 20X7 Quick Company acquired 100 percent of Sluggish Company's stock when Sluggish reported stock of $350,000; and retained earnings of $400,000. At the date of acquisition, the book values and the fair values of Sluggish's assets and liabilities were equal. For 20X7, Sluggish reported net income of $500,000, and paid dividends of $25,000 book values as follows: assets of $1,200,000; liabilities of $450,000: common Give the eliminating entry needed on December 31, 20X7, to prepare consolidated financial statements DEBIT CREDIT ACCOUNT