Mason Corporation acquired 100 percent ownership of Best Company on February 12, 20X9. At the date of

Question:

Mason acquired 100 percent ownership of Best Company on February 12, 20X9. At the date of acquisition, Best Company reported assets and liabilities with book values of $420,000 and $165,000, respectively, outstanding of $80,000, and retained earnings of $175,000. The book values and fair values of Best's assets and liabilities were identical except for land, which had increased in value by $20,000, and inventories, which had decreased by $7,000. The estimated fair value of Best as a whole at the date of acquisition was $295,000.

Required
Give the elimination entries required to prepare a consolidated immediately after the business combination assuming Mason acquired its ownership of Best for:
a. $280,000.
b. $251,000.

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