General Corporation acquired 80 percent of Strap Companys voting common stock on January 1, 20X4, for $138,000.

General Corporation acquired 80 percent of Strap Company’s voting common stock on January 1, 20X4, for $138,000. At that date, the fair value of the noncontrolling interest was $34,500. Strap’s balance sheet at the date of acquisition contained the following balances:

At the date of acquisition, the reported book values of Strap’s assets and liabilities approximated fair value.

Required
Give the elimination entry or entries needed to prepare a consolidated balance sheet immediately following the businesscombination.

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STRAP COMPANY Balance Sheet January 1, 20X4 $ 20,000 Accounts Payable Cash Accounts Receivable Land Building & Equipment Less: Accumulated Depreciation Total Assets $ 35,000 180,000 100,000 75,000 (30,000) 5360,000 35,000 Notes Payable 90,000 Common Stock 300,000 (85,000) Additional Paid-in Capital Retained Earnings $360,000 Total Liabilities & Stockholders Equity