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Big Co acquired 100% of the common Stock of Little Co. on 1/1/22 for $200,000. Little's book value on that date was $200,000, and all assets and liabilities had fair values equal to book value.
In 2022, Little reported earnings of $30,000 and paid dividends of $10,000
In 2023 Little reported earnings of $40,000 and paid dividends of $15,000.
Required:
Problem 1: Prepare elimination entries
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