Q.4 Adel Corporation acquired 90% of the voting stock of sham Corporation on January 1, 2010 for (10 marks) $11,700 when sham had Capital Stock of $5,000 and Retained Earnings of $4,000. The amounts reported on the financial statements approximated fair value, with the exception of inventories, which were understated on the books by $500 and were sold in 2010, land which was undervalued by $1,000, and equipment with a remaining useful life of 5 years under the straight-line method which was undervalued by $1,500. Any remainder was assigned to goodwill. Financial statements for Adel and sham Corporations at the end of the fiscal year ended December 31, 2011 appear in the first two columns of the partially completed consolidation working papers. Adel has accounted for its investment in sham using the equity method of accounting. Adel Corporation owed sham Corporation $100 on open account at the end of the year. Dividends receivable in the amount of $450 payable from sham to Adel is included in Adel's net receivables. Required: Prepare the eliminating entries?