Rand Corp. acquired 100% of Spaulding Inc. on December 31, 2012. Spaulding was dissolved right afterwards, Please prepare the journal entry for consolidation under two situations. Rand Spaulding Corn. Ing. Revenues $ 372.000 $108.000 Expenses (264,000) (72,000) Equity in subsidiary earnings 25.000 Net income S 133.000 $36.000 Retained earnings, January 1, 2012 S 765.000 $102,000 Net income (above) 133.000 36,000 Dividends paid (84.000) 124.000) Retained earnings, December 31, 2012 S. 814.000 S114.000 Current assets $ 150.000 $ 22,000 Investment in Spaulding Inc 242,000 0 Buildings (net) 325.000 85.000 Equipment (net) 389,250 129.000 Total assets SL 306,250 $236.000 Liabilities $82.250 S 50,000 Common stock 360,000 72,000 Additional paid-in capital 50.000 0 Retained earnings, December 31, 2012 (above) 814.000 114.000 Total liabilities and stockholders' equity S1.306,250 $236.000 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