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Pool Company purchased 90% of the outstanding common stock of Spruce Company on December 31, 2014,...

Pool Company purchased 90% of the outstanding common stock of Spruce Company on December 31, 2014, for cash. At that time the balance sheet of Spruce Company was as follows:

Current assets $1,123,900
Plant and equipment 976,700
Land 163,170
   Total assets $2,263,770
Liabilities $847,960
Common stock, $20 par value 849,200
Other contributed capital 459,020
Retained earnings 211,390
   Total 2,367,570
Less treasury stock at cost, 5,190 shares 103,800
   Total equities $2,263,770

Prepare the elimination entry required for the preparation of a consolidated balance sheet workpaper on December 31, 2014, assuming the purchase price of the stock was $1,360,300. Assume that any difference between the book value of net assets and the value implied by the purchase price relates to subsidiary land.

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