On January 1, 20X1, Rodriguez Inc. purchased 100% of the common shares of Teresa Inc., for $325,000. On that date the following differences were observed with regard to specific net assets of Teresa Inc.:

                       Fair value€“carrying value differences

Land...................................................................($75,000)
Buildings (net).......................................................35,000
Equipment (net)..................................................(45,000)
Notes payable.......................................................15,000

The separate entity SFP of Teresa and the consolidated SFP of Rodriguez Inc. on January 1, 20X1, are presented below. The consolidated SFP of Rodriguez was prepared following the acquisition method.

Required
Prepare the January 1, 20X1, separate-entity SFP of Rodriguez Inc. Show all supporting calculations.

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Consolidated Teresa Cash 25,000 70,000 Accounts receivable 72,500 197,500 Inventory 129,000 234,000 Land 125,000 280,000 Buildings (net) 60,000 720,000 Equipment (net) 48,000 338,000 Goodwill 50,000 TOTAL ASSETS 409,500 1,889,500 Accounts payable 6,000 131,000 Notes payable 3,500 572,500 Common stock 310,000 380,000 Retained earnings 140,000 806,000* TOTAL LIABILITIES AND SHAREHOLDERS' 1,889,500 EQUITY 409,500