Fineline Pencil Company acquired 80 percent of Smudge Eraser Corporations stock on January 2, 20X3, for $72,000

Fineline Pencil Company acquired 80 percent of Smudge Eraser Corporation’s stock on January 2, 20X3, for $72,000 cash. Summarized balance sheet data for the companies on December 31, 20X2, are as follows:

Required
Prepare a consolidated balance sheet immediately following theacquisition.

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Fineline Pencil Company Smudge Eraser Corporation Book Value Book Value 5 50,000 120,000 170,000 S 80,000 Fair Value Fair Value Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits $200,000 400,000 5600,000 $100,000 300,000 200,000 $200,000 400,000 50,000 120,000 100,000 80,000 50,000 40,000 170,000