On June 30, 200X P paid $375,000 cash for 100% of the Common Stock of S Company. The transaction is an acquisition of wherein the acquired company is not dissolved. S Company is maintained as a separate subsidiary of P Company. It is still an entity, but in this case P Company owns all of it's stock.

Following information is shown prior to acquisition being recorded:
P Company
Assets Liabilities and Capital
Cash $580,000 Current Liabilities $90,000
Inventories 60,000 Common Stock $5PV 100,000
Plant Assets 340,000 Additional Paid in Capital 200,000 Retained Earnings 590,000
Total $980,000 Total $980,000

S Company
Assets Liabilities and Capital
Inventories $ 20,000 Current Liabilities $30,000
Other Assets 40,000 Long Term Liabilities 50,000
Plant Assets 140,000 Common Stock $10 PV 40,000 Additional Paid in Capital 20,000
Retained Earnings 60,000
Total $200,000 Total $200,000

Differences between identifiable net assets of S Company were:
Current           Fair Value     Book Value   Difference
Inventories       $50,000          $20,000      $30,000
Plant                 250,000          140,000      110,000

A. Prepare the journal entries showing the purchase

B. Prepare a schedule showing the amount of goodwill from this purchase.

C. Prepare a consolidation worksheet showing the eliminations.

D. Prepare a consolidated balance sheet AS OF June 30, 200X using the consolidation worksheet as a basis.