Question 9 (Mandatory) (10 points) Rand Corp. acquired 1006 of Spaulding Inc. on December 31, 2012. Spaulding was dissolved right afterwards. Please prepare the journal entry for consolidation under tro situations. Situation 1: Rand pays $200,000 cash to acquire all of the Spaulding s assets and liabilities. The fair value of Spaulding s Equipment is $4,000 higher than its book value. For the rest assets and liabilities, there is no difference between book value and fair value. Situation 2: Rand pays $180,000 cash to acquire all of the Spaulding s assets and liabilities. The fair value of spaulding s Equipment is $4,000 higher than its book value. For the rest assets and liabilities, there is no difference between book value and fair value. Question 9 (Mandatory) (10 points) Rand Corp. acquired 1006 of Spaulding Inc. on December 31, 2012. Spaulding was dissolved right afterwards. Please prepare the journal entry for consolidation under tro situations. Situation 1: Rand pays $200,000 cash to acquire all of the Spaulding s assets and liabilities. The fair value of Spaulding s Equipment is $4,000 higher than its book value. For the rest assets and liabilities, there is no difference between book value and fair value. Situation 2: Rand pays $180,000 cash to acquire all of the Spaulding s assets and liabilities. The fair value of spaulding s Equipment is $4,000 higher than its book value. For the rest assets and liabilities, there is no difference between book value and fair value