Reed Corporation acquired 100 percent of Thorne Corporation's voting common stock on December 31, 20X4, for $415,000. At the date of combination, Thorne reported the following:

Assets					Liabilities
Cash		$	129,000		Current Liabilities		$	72,000
Inventory			112,000		Long-Term Liabilities			248,000
Buildings (net)			421,000		Common Stock			110,000
					Retained Earnings			232,000
Total		$	662,000		Total		$	662,000

At December 31, 20X4, the book values of Thorne's net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $13,000 less than book value, and inventories, which had a fair value $28,000 more than book value.

Required:

Reed Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Prepare the consolidating entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

record the basic consolidation entry

record the excess value (differential) reclassification entry.