Professor Corporation acquired 70 percent of Scholar Corporation's common stock on December 31, 20X4, for $102,200. The fair value of the noncontrolling interest at that date was determined to be $43,800 Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Scholar Corporation Total Assets Accounts Payable Mortgage Payable Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Professor Corporation $50,300 90,000 130,000 60,000 410,000 (150,000) 102,200 $ 692,500 $ 152,500 250,000 80,000 210,000 $ 692,500 Scholar Corporation $ 21,000 44,000 75,000 30,000 250,000 (80,000) $ 340,000 $ 35,000 180,000 40,000 85,000 $ 340,000 At the date of the business combination, the book values of Scholar's assets and liabilities approximated fair value except for inventory, which had a fair value of $81,000, and buildings and equipment, which had a fair value of $185,000. At December 31, 20X4 Professor reported accounts payable of $12,500 to Scholar, which reported an equal amount in its accounts receivable.

Part A

1. record basic consolidation entry

2. record excess value (differential) reclassification entry

3. record the entry to eliminate the intercompany accounts

4. record the optional accumalated depreciation consolidation entry

Required: a. Record the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Professor Corporation acquired 70 percent of Scholar Corporation's common stock on December 31,204, for $102,200. The fair value of the noncontrolling interest at that date was determined to be $43,800. Data from the balance sheets of the two companies Included the following amounts as of the date of acquisition: At the date of the business combination, the book values of Scholar's assets and liabilities approximated fair value except for inventory, which had a fair value of $81,000, and bulldings and equipment, which had a fair value of $185,000. At December 31,204 Professor reported accounts payable of $12,500 to Scholar, which reported an equal amount in its accounts recelvable. c. Prepare a consolidated balance sheet in good form Note: Be sure to list the ossets ond liabilities in order of their liquidity. Amounts to be deducted should be indicated with a minus sign. Prepare a consolidated balance sheet worksheet. Note: Values in the first two columns (the "porent" and "subsidiary" balances) that ore to be cleducted should be indicated with o minus sign, while all volues in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple odjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similorly, combine all credit entries into one omount and enter this amount in the credit column of the worksheet