Advanced Accounting

Lea Company acquired all of Tenzing Corporation's stock on January 1, 20X6 for $150,000 cash. On December 31, 20X7, the balance sheets of the two companies showed the following amounts:

(Source: Baker, Christensen, & Cottrell, 2012)

Tenzing Corporation reported retained earnings of $75,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of five years from the date of acquisition.

Answer the following questions:

1. Give the appropriate eliminating entry or entries needed to prepare a consolidated balance sheet as of December 31, 20X7.

2. Prepare a consolidated balance sheet worksheet as of December 31, 20X7.

Submit your responses in MSWord as one document. Label each section clearly. For written answers, please make sure your responses are well written