Balance Sheet Consolidation Reed Corporation acquired 100 percent of Thorne Corporation’s voting common stock on December 31, 2014, for $395,000

Balance Sheet Consolidation

Reed Corporation acquired 100 percent of Thorne Corporation’s voting common stock on December 31, 2014, for $395,000. At the date of combination, Thorne reported the following:

At December 31, 2014, the book values of Thorne’s net assets and liabilities appro1imated their fair values, e1cept for buildings, which had a fair value of $20,000 less than book value, and inven- tories, which had a fair value $36,000 more than book value.

Required

Reed Corporation wishes to prepare a consolidated balance sheet immediately following the busi- ness combination. Give the consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 2014