you are given the following information:

- On January 1, 2015 Company A acquired 75% of the voting common stock of company B for $1,500,000 cash.

- Company B realized net income of $200,000 for year 2015

- Beginning balance in retained earnings of company B was 500,000

- Company B had common stocks of 50,000 shares ($ 5 par value per share, trading price $30) at the date of acquisition.

- Company B declared dividends of $100,000 for year 2015

Required:

Prepare basic elimination entry to prepare consolidated financial statements assuming the parent company used equity method and no differential (acquisition price equal net book value of the assets of the acquired company).