On January $1,20$X$1,$ Pluto Company acquired all of Saturn Companys common stock for $$1,000,000$ cash. On that date, Saturn had retained earnings of $$200,000$ and common stock of $$600,000.$ The book values of Saturns assets and liabilities were equal to fair values except for the following: Book Value Fair valueEquipment $($net$)$$$200,000$ $$220,000$ Land $250,000300,000$ Additional Information:The equipment had an estimated remaining useful life of five years at acquisition.Goodwill was not impaired at December $31,20$X$1,$ but was impaired by $$25,000$ at $$December $31,20$X$2.$Reported income for Pluto $($excluding equity income from Saturns earnings$)$ and Saturn follows: Pluto SaturnYear $20$X$1$$$500,000$ $$200,000$ Year $20$X$2$$$350,000$ $$100,000$ Required:Prepare the January $1,20$X$1,$ journal entry on Plutos books to record the acquisition of Saturn.Prepare the elimination entries needed to prepare a consolidated balance sheet immediately after acquisition.Calculate consolidated income for $20$X$1$ and $20$X$2.$