Topp Manufacturing Company acquired 90 percent of Bussman Corporation's outstanding common stock on December 31, 20X1, for $3,244,050. At that date, the fair value of the noncontrolling interest was $360,450, and Bussman reported common stock outstanding of $1,451,250, premium on common stock of $481,140, and retained earnings of $972,000 The book values and fair values of Bussman's assets and liabilities were equal, except for land, which was worth $319,140 more than its book value. On April 1, 20X2, Topp issued at par $540,000 of 8 percent bonds directly to Bussman; interest on the bonds is payable March 31 and September 30. On January 2, 20X3, Topp purchased all of Bussman's outstanding 10-year 14 percent bonds from an unrelated institutional investor at 97. The bonds orginally had been issued on January 2, 6 years ago, for 103. Interest on the bonds is payable December 31, and June 30. Since the date it was acquired by Topp Manufacturing, Bussman has sold inventory on account to Topp on a regular basis.The amount of such intercompany sales totaled $279,045 in 20X2 and $493,290 in 20X3, including a 42 percent gross profit.All inventory transferred in 20X2 had been sold by December 31, 20X2, except inventory which Topp paid $58,725 and did not resell until January 20X3. All 20X2 inventory transactions on account had been satisfied prior the end of the year.Inventory transferred in 20X3 had been resold at December 31, 20X3, except merchandise for which Topp had paid $112,050 An account balance of $63,450 remained unpaid on 20X3 inventory transactions. On January 1, 20X2, Bussman sold equipment to Topp for $303,750.Bussman had purchased the equipment for $500,850 on January 1, 20X0, and was depreciating it on a straight-line basis with a 10-year expected life and no anticipated salvage value The equipment's total expected life is unchanged as a result of the intercompany sale. As of December 31, 20X3, Bussman had declared but not yet paid its fourth-quarter dividend of $10,000. Both Topp and Bussman use straight-line depreciation and amortization, including the amortization of bond discount and premium.On December 31, 20X3, Topp's management evaluated the Bussman's asset fair value and determined the fair value of Bussman's net assets was $2,517,750 and the fair value of net assets excluding goodwill was $2,227,500. Any goodwill impairments should be shared proportionately between controlling and noncontrolling interests.Topp uses the basic equity method to account for its investment in Bussman.

1. Prepare all eliminating entries required to prepare a three-part consolidated