Professor Corporation acquired 70 percent of Scholar Corporation’s common stock on December 31, 20X4, for $102,200. The fair value of the noncontrolling interest at that date was determined to be $43,800. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Professor Corporation Scholar
Corporation
Cash $ 50,300 $ 21,000
Accounts Receivable 90,000 44,000
Inventory 130,000 75,000
Land 60,000 30,000
Buildings & Equipment 410,000 250,000
Less: Accumulated Depreciation (150,000 ) (80,000 )
Investment in Scholar Corporation 102,200
Total Assets $ 692,500 $ 340,000
Accounts Payable $ 152,500 $ 35,000
Mortgage Payable 250,000 180,000
Common Stock 80,000 40,000
Retained Earnings 210,000 85,000
Total Liabilities & Stockholders’ Equity $ 692,500 $ 340,000

At the date of the business combination, the book values of Scholar’s assets and liabilities approximated fair value except for inventory, which had a fair value of $81,000, and buildings and equipment, which had a fair value of $185,000. At December 31, 20X4, Professor reported accounts payable of $12,500 to Scholar, which reported an equal amount in its accounts receivable.

Required:
a. Record the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)