Elder Co. acquired for cash all of the outstanding stock of BaBe Co. on December 31 for $870,000. The balance sheets of the two companies just prior to the acquisition were as follows:

An independent appraiser valued the assets of BaBe Co. as follows:

Required:
Prepare a consolidated balance sheet as of the acquisition date. Assume that no intercompany transactions have occurred in the past and that Elder will assume BaBe's liabilities.

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Elder BaBe Current assets Net fixed assets Other assets $ 1,974,000 32,814,000 14,412,000 $49.200,000 5138,000 537,600 134.400 Total assets 5810,000 Current liabilities Long-term debt Common stock Paid-in capital Retained earnings s 3,600,000 15,582,000 24,000,000 5,418,000 42,000 150,000 462,000 120,000 36,000 $810,000 600,000 Total equities $49,200,000 Market Value Current assets Net fixed assets Other assets $150,000 555,600 134,400