2. On January 1, 20X8, Gregory Corporation acquired 90 percent of Nova Company's voting stock, at underlying book value. The fair value of the non controlling interest was equal to 10 percent of the book value of Nova at that date. Gregory uses the equity method in accounting for its ownership of Nova. On December 31, 20X8, the trial balances of the two companies are as follows:

Required:
Provide all eliminating entries required as of December 31, 20X8, to prepare consolidated financial statements.

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Gregory Corp Nova Company Dr Cr Dr Cr Current Assets 200000 120000 Depreciable Assets 300000 225000 Investment in Nova 139500 25000 Depreciation Expense 30000 Other Expenses 100000 60000 Dividends Declared 30000 10000 Accumulated Depreciation 120000 75000 Current Liabilities 62000 25000 Long-Term Debt 75000 90000 Common Stock 100000 75000 Retained Earnings 120000 65000 Sales 300000 110000 Income from Subsidiary 22500 Totals 799500 799500 440000 440000