Blank Corporation acquired 100 percent of Faith Corporations common stock on December 31, 20X2, for $189,000. Data

Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $189,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

At the date of the business combination, Faith’s net assets and liabilities approximated fair value except for inventory, which had a fair value of $84,000, and buildings and equipment (net), which had a fair value of $165,000.

Required
a. Give the elimination entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.
b. Prepare a consolidation balance sheetworksheet.

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Blank Corporation Corporation Faith ltem Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Faith Corporation Stock Total Assets 26,000 87,000 110,000 220,000 189,000 $632,000 18,000 37,000 60,000 150,000 $265.000 Accounts Payable Notes Payable Common Stock Retained Earnings Total Liabilities & Stockholders' Equity 92,000 150,000 100,000 290,000 $632,000 35,000 80,000 60,000 90,000 $265.000