On December 31 2010 Price Company purchased a controlling interest
On December 31, 2010, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 31, 2010, were as follows:

On the date of acquisition, the stockholders’ equity section of Shipley Company’s balance sheet was as follows:
Common stock............. $ 90,000
Other contributed capital....... 90,000
Retained earnings........ 56,000
Total.............. $236,000

A. Prepare the investment elimination entry made to complete a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land.
B. Prepare Shipley Company’s balance sheet as it appeared on December 31,2010.
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