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Mathews Co. acquired all the common stock of Stewart Co. on January 1, 2020. As of that date, Stewart had the following trial balance:

	Debit	Credit
accounts payable		60,000
accounts receivable	50,000
additional paid in capital		60,000
buildings, net (20 yr life)	140,000
cash and short-term investments	70,000
common stock		300,000
equipment, net (8 yr life)	240,000
intangible assets (infinite life)	110,000
land	90,000
long-term liabilities ( matures 12/31/22)		180,000
Retained earnings 1/1/20		120,000
supplies	20,000
totals	720,000	720,000

During 2020, Stewart reported net income of $112,000 while paying dividends of $14,000. Assume that Mathews Co. acquired the common stock of Stewart Co. for $638,000 in cash. As of January 1, 2020, Stewart's land had a fair value of $112,000, its buildings were valued at $192,000, and its equipment was appraised at $245,000. Any excess of consideration transferred over fair value of assets and liabilities acquired is due to an unamortized patent to be amortized over 10 years.

Mathews decided to use the equity method for this investment.

Required:

Prepare consolidation entries for this business combination for the year 2020. For all consolidation entries, label them as S, A, I, D, or E. Do not prepare the worksheet.

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