Lane Manufacturing Company acquired 75 percent of Tin Corporation stock at underlying book value. At the date of acquisition, the fair value of the noncontrolling interest was equal to 25 percent of Tin’s book value. The balance sheets of the two companies for January 1, 20X1, are as follows:

On January 2, 20X1, Lane purchased an additional 2,500 shares of common stock directly from Tin for $150,000. Any purchase differential is assigned to buildings and equipment.

Required
a. Prepare the elimination entry needed to complete a consolidated balance sheet worksheet immediately following the issuance of additional shares to Lane.
b. Prepare a consolidated balance sheet worksheet immediately following the issuance of additional shares toLane.

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LANE MANUFACTURING COMPANY Balance Sheet January 1, 20x1 $ 227,500 60,000 100,000 600,000 (150,000) 262,500 $ 50,000 400,000 200,000 50,000 400,000 Cash Accounts Receivable Buildings & Equipment Investment in Tin Products Total Assets Accounts Payable Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings $1,100,000 Total Liabilities & Equities $1,100,000 TIN CORPORATION Balance Sheet January 1, 20x1 Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets S 60,000 100,000 180,000 600,000 (240,000) $700,000 Accounts Payable Bonds Payable Common Stock ($10 par) Additional Paid-in Capital Retained Earnings Total Liabilities & Equities S 50,000 300,000 100,000 50,000 200,000 $700,000