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Phone Corporation acquired 70 percent of Smart Corporations common stock on December 31, 20X4, for $93,100. At that date, the fair value of the noncontrolling interest was $39,900. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

	Phone					Smart
Item	Corporation					Corporation
Cash		$	64,300				$	22,000
Accounts Receivable			98,000					59,000
Inventory			138,000					77,000
Land			63,000					50,000
Buildings & Equipment			430,000					267,000
Less: Accumulated Depreciation			(157,000	)				(79,000	)
Investment in Smart Corporation			93,100
Total Assets		$	729,400				$	396,000
Accounts Payable		$	150,500				$	27,000
Mortgage Payable			308,900					257,000
Common Stock			67,000					35,000
Retained Earnings			203,000					77,000
Total Liabilities & Stockholders Equity		$	729,400				$	396,000

At the date of the business combination, the book values of Smarts assets and liabilities approximated fair value except for inventory, which had a fair value of $83,000, and buildings and equipment, which had a fair value of $203,000. At December 31, 20X4, Phone reported accounts payable of $14,400 to Smart, which reported an equal amount in its accounts receivable. Required: a. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.

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