On January 1,2014,Gregory Company Acquired a 90% Interest in Subway

On January 1,2014,Gregory Company acquired a 90% interest in Subway Company for $200,000 cash.On January 1,2014,Subway Company had the following assets and liabilities:
$\begin{array}{lll}& \underline{\text {Book Value}}&\underline{\text {Fair Value}}\\\text { Cash } & \$ 5,000 & \$ 5,000 \\\text { Accounts Receivable } & 30,000 & 35,000 \\\text { Inventory } & 40,000 & 50,000 \\\text { Other Current Assets } & 10,000 & 10,000 \\\text { Plant Assets } & \underline{60,000} &\underline{8 0 , 0 0 0} \\\text { Total Assets } &\underline{ \$ 145,000 }& \underline{\$ 180,000}\end{array}$
$$\begin{array} { l l } \text { Liabilities } & \$ 25,000&\$25,000 \\\text { Common Stock } & 100,000 \\\text { Retained Earnings } &\underline{ \$ 20,000}\end{array}$$ Total Liabilities &
The plant assets have 20 years of useful life remaining.Straight-line depreciation is used.The excess fair value over book value associated with Accounts Receivable and Inventory is realized in 2014.
In 2014,Subway reported net income of $35,000 and declared and paid common dividends of $10,000.Gregory reported Income from Subway in 2014 of $17,100.
Required:
Assume both companies use the entity theory.Prepare the elimination entry(ies)on consolidating work papers for the year ending December 31,2014.