Use the data for the Prime Company acquisition of the Second Company to prepare the consolidation worksheet entries for the December 31, year two, worksheet

Prime Company acquired 100.00% of the common stock of Second Company on January 1, year one, for $600,000 On that date, Second had the following trial balance: debit credit 100,000 account Additional paid in capital Building (12-year life) Common stock Current assets Equipment (6-yr life) Land Liabilities (due in 4 years) Retained earnings 1/year 1 250,000 170,000 170,000 160,000 110,000 300,000 120,000 Totals 690,000 690,000 During year one, Second reported net income of $60,000 $30,000 During year one, Second paid dividends of During year two, Second reported net income of $80,000 $40,000 During year two, Second paid dividends of On January 1, year one, fair values were: Land Building Equipment $122,000 $286,000 $184,000 There was no impairment of any goodwill arising from the acquisitiorn