Rand Corp. acquired 100% of Spaulding Inc. on December 31, 2012. Spaulding wasdissolvedright afterwards. Please prepare thejournal entryfor consolidationunder two 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.