The condensed balance sheets as of December 31 for Rice and Associated and Rachel Excavation are as follows:

As of December 31, the market values of Rachel's inventories and fixed assets were $70,000 and $120,000, respectively. Liabilities are at FMV on the balance sheet.On December 31, Rice and Associates purchased all of the outstanding common shares of Rachel Excavation for $180,000 cash. The preceding balance sheets were prepared immediately prior to the acquisition.REQUIRED:a. Prepare the journal entry recorded by Rice to recognize the acquisition.b. Prepare a consolidated work sheet and a consolidated balance sheet.

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Rice Rachel ASSETS $ 196,000 150,000 300,000 400,000 S1,046,000 S 10,000 40,000 40,000 130,000 S220.000 Cash Accounts receivable Inventory Fixed assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY S 80,000 300,000 400,000 140,000 126,000 S 20,000 50,000 90,000 10,000 50,000 Accounts payable Long-term liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and shareholders' equity S220.000 S1,046,000