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Item2

Item 2 33.33 points

Plaza Corporation acquired 100 percent of Square Corporation's voting common stock on December 31, 20X4, for $406,000. At the date of combination, Square reported the following:

AssetsLiabilitiesCash$128,000Current Liabilities$66,000Inventory106,000Long-Term Liabilities273,000Buildings (net)429,000Common Stock103,000Retained Earnings221,000Total$663,000Total$663,000

At December 31, 20X4, the book values of Square's net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $19,000 less than book value, and inventories, which had a fair value $31,000 more than book value.

Required:

Plaza Corporation wishes to prepare consolidated balance sheet immediately following the business combination. Prepare the consolidating entry or entries needed to prepare consolidated balance sheet at December 31, 20X4.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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