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Consolidation Entries with Differential On June 10, 2018, Tower Corporation acquired 100 percent of Brown Company’s common stock

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Consolidation Entries with Differential

On June 10, 2018, Tower Corporation acquired 100 percent of Brown Company’s common stock. Sum- marized balance sheet data for the two companies immediately after the stock acquisition are as follows:

1. Give the consolidation entries required to prepare a consolidated balance sheet immediately after the acquisition of Brown Company shares.
2. E1plain how consolidation entries differ from other types of journal entries recorded in the normal course of business.