Consolidating a VIE at the Date of Acquisition Pelican Mountain Resorts uses a financial entity to obtain secured debt. It sells customer timeshare agreements to the entity, who finances the purchases with debt secured by future collections on the timeshare agreements. On January 1, 2019, Pelican deter- mines that the entity is a VIE and Pelican is its primary beneficiary. Pelican has no E5.4 equity interest in the VIE. The VIE's balance sheet on that date is as follows: 

On January 1, 2019, the VIE's other assets are undervalued by $65,000 and it has previously unrecorded identifiable intangible assets of $1,000,000. The fair value of the VIE is $1,500,000 

Required Prepare the eliminating entries required to consolidate the VIE with Pelican on January 1,2019, assuming the VIE and Pelican are 

a. already under common control.

b. not under common control.

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$4,000,000 500,000 $4,250,000 250,000 Receivables Secured debt Other assets Equity... D...... Total assets $4,500,000 Total debt & equity. $4,500,000 $4,000,000 500,000 $4,250,000 250,000 Receivables Secured debt Other assets Equity... D...... Total assets $4,500,000 Total debt & equity. $4,500,000