Playtown Corporation purchased 75 percent of Sandbox Corporation common stock and 40 percent of its preferred stock on January 1, 20X6, for $270,000 and $80,000, respectively. At the time of purchase, the fair value of the common shares of Sandbox held by the noncontrolling interest was $90,000. Sandbox’s balance sheet contained the following balances:

Required

Give the consolidation entries needed to prepare a consolidated balance sheet immediately after Playtown purchased the Sandbox shares.

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Preferred Stock ($10 par value) Common Stock ($5 par value) Retained Earnings Total Stockholders' Equity $200,000 150,000 210,000 $560,000