Q$1)$ P Corporation acquired $100$ percent of S Company's outstanding

common stock on January $1,2022,$ for $$550,000$ cash. S reported net assets

with a book value of $$350,000$ at that time. Some of $S$ assets had fair values

that differed from book values as follows:

Any goodwill is considered to have an indefinite life with no impairment

charges during the year. Following are financial statements at the end of

the first year for these two companies prepared from their separately

maintained accounting systems.

Required:

a$)$prepare elimination entries at $\frac{31}{12}\frac{?}{2022}$

b$)$ Show how $P$ computed the $$210,000$ income of $S$ balance.

c$)$ Using the preceding information, prepare a consolidation worksheet

for these two companies as of December $31,2022$