Consolidation Below are the condensed balance sheets of Princecraft and Sylvan Companies at December 31, 2012. On January 1, 2013, Princecraft acquired all of the voting shares of Sylvan by issuing 400,000 shares of its $1 par value common stock. Princecraft's stock is currently trading at $120 in an active market. The book values of Sylvan Company's net assets approximate fair value.

Required
a. Prepare the journal entry Princecraft makes to record the business combination as a stock acquisition.
b. Prepare the eliminating entries necessary to consolidate the balance sheets of Princecraft Company and Sylvan Company on January 1, 2013.
c. Present the consolidated balance sheet at January 1,2013.

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Princecraft Sylvan Company Company Balance Sheets Additional paid-in capital Retained earnings 45,000,000 10,000,000 60,000,000 2,000,000