Pool Company purchased 90% of the outstanding common stock of Spruce Company on December 31, 2014, for cash. At that time the balance sheet of Spruce Company was as follows:

Current assets		$1,135,400
Plant and equipment		1,069,190
Land		175,250
Total assets		$2,379,840
Liabilities		$830,150
Common stock, $20 par value		825,300
Other contributed capital		441,330
Retained earnings		377,560
Total		2,474,340
Less treasury stock at cost, 4,725 shares		94,500
Total equities		$2,379,840

Prepare the elimination entry required for the preparation of a consolidated balance sheet workpaper on December 31, 2014, assuming the purchase price of the stock was $1,218,920. Assume that the subsidiary land has a fair value of $184,830, and the other assets and liabilities are fairly valued.

Answer rating: 100% (QA)

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