Prophet Corporation acquired 75 percent of Seer Corporations voting common stock on December 31, 20X4, for $390,000. At the date of combination, Seer reported the following:

Assets		Liabilities
Current Assets	$ 220,000	Current Liabilities	$ 80,000
Long-Term Assets (net)	420,000	Long-Term Liabilities	200,000
		Common Stock	120,000
		Retained Earnings	240,000
Total	$ 640,000	Total	$ 640,000

At December 31, 20X4, the book values of Seer's net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $80,000 more than book value, and inventories, which had a fair value of $36,000 more than book value. The fair value of the noncontrolling interest was determined to be $130,000 at that date.

Required:

Prophet Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4.

a, Record the basic consolidation entry.

b. Record the excess value (differential) reclassification entry.