Pool Company purchased 90% of the outstanding common stock of Spruce Company on December 31, 2024, for cash. At that time the balance sheet of Spruce Company was as follows:

Required:
Prepare the elimination entry required for the preparation of a consolidated balance sheet workpaper on December 31, 2024, assuming:
(1) The purchase price of the stock was $1,400,000. Assume that any difference between the book value of net assets and the value implied by the purchase price relates to subsidiary land.
(2) The purchase price of the stock was $1,160,000. Assume that the subsidiary land has a fair value of $180,000, and the other assets and liabilities are fairly valued.

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Current assets Plant and equipment Land Total assets Liabilities Common stock, $20 par value Other contributed capital Retained earnings Total Less treasury stock at cost, 5,000 shares Total equities $1,050,000 990,000 170,000 $2,210,000 $ 820,000 900,000 440,000 150,000 2,310,000 100,000 $2,210,000