The X Company on December 31st, 2020 purchased 80% of the Y Company for $800,000 plus they made an agreement to pay an additional $80,000 in two years if sales grew by more than 30% over the two year period. An independent appraiser stated that the contingent consideration could have been settled by paying $30,000 at the date of acquisition. On this date the inventory of Y had a fair value of321,250, land had a fair value of $136,500 and plant and equipment had a fair value of $546,00. The balance sheets of X and Y at December 31st.2020, are given below:- X y Cash.$ 19,500$ 9,750 Accounts receivable. 171,950 68,250 Inventory 175,500.. 312,000 Land.. 136,500. 78,000 Plant & Equipment.. 602,000 565,500 Investment in Y.. 900,000.. 0. Goodwill. 175,500.. 58,500 TOTAL ASSETS..$2,180,950.$1,092,000 Current liabilities$ 234,000 $156,000. Long term debt 724,000.. 429,000 Common shares... 780,000. 585,000 Retained Earnings 442,950. ( 78,000) TOTAL LIABILITIES&OWNERS EQUITY$2,180,950$1,092,000

Required:- Calculate the goodwill on consolidation (6marks)

Prepare the consolidated balance sheet at the date of acquisition(15 marks)

Assume that the accountants of X used the working paper method to prepare the consolidated balance, prepare the eliminating entry at acquisition under this method(4)