Cameron Corporation acquired 70 percent of Darla Corporation’s common stock on December 31, 20X4, for $87,500. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
At the date of the business combination, the book values of Darla Corporation’s assets and liabilities approximated fair value, and the fair value of the noncontrolling interest was equal to 30 percent of the book value of Darla Corporation. At December 31, 20X4, Cameron reported accounts payable of $12,500 to Darla, which reported an equal amount in its accounts receivable.
a. Give the eliminating entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.
b. Prepare a consolidated balance sheet worksheet.
c. Prepare a consolidated balance sheet in good form.