On June 10, 20X8, Game Corporation acquired 70 percent of Amber Company’s common stock. The fair value of the noncontrolling interest was $21,000 on that date. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows.
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Game Corp.
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Amber Company
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Item
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Book Value
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Book Value
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Fair Value
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Cash
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$
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34,800
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$
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13,000
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$
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13,000
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Accounts Receivable
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41,000
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18,000
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18,000
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Inventory
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87,000
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28,000
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33,000
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Buildings & Equipment (net)
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138,000
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61,000
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81,000
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Investment in Amber Stock
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49,000
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Total
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$
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349,800
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$
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120,000
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$
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145,000
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Accounts Payable
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$
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24,000
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$
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3,000
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3,000
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Bonds Payable
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215,800
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72,000
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72,000
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Common Stock
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45,000
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14,000
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Retained Earnings
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65,000
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31,000
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Total
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$
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349,800
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$
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120,000
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$
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75,000
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Record the consolidation entries required to prepare a consolidated balance sheet immediately after the purchase of Amber Company shares.