On January 1,2014,Singh Company Acquired an 80 Percent Interest in Gonzalez

Essay

On January 1,2014,Singh Company acquired an 80 percent interest in Gonzalez Company for $300,000.On January 1,2014,Gonzalez's total stockholders' equity was $375,000.The fair value and book value of Gonzalez's individual assets and liabilities were equal.
On January 2,2014,Gonzalez Company acquired a 10 percent interest in Singh Company for $50,000.On January 2,2014,Singh's total stockholders' equity was $500,000.The fair value and book value of Singh's individual assets and liabilities were equal.
For the year ending December 31,2014,the following data is available:
$$\begin{array} { l cc } & \text { Netincome } &\text { Dividends } \\\text { Singh Company } & \$ 40,000 & \$ 0 \\\text { Gonzalez Company } & \$ 10,000 & \$ 0\end{array}$$ The treasury stock method is used to account for the mutual stock holdings between Singh and Gonzalez.The separate net incomes do not include investment income.A partial consolidating worksheet is below.
Required:
Prepare the elimination entries for the year ending December 31,2014.
Do not enter them onto the worksheet.Instead,list them below.