Potash Company acquired 100 percent of Bortz Corporation's common stock at underlying book value on December 31, 20X4, which was equal to the fair value of Bortz as a whole. Potash uses the equity method in accounting for its investment in Bortz. On December 31, 20X6, Potash sold equipment with a book value of $85,000 to Bortz for $110,000. Bortz made immediate payment of $93,000 and will pay the remainder on March 15, 20X7. Balance sheet data on January 1, 20X7, are as follows:

Required 

Prepare a consolidated balance sheet for Potash as of January 1, 20X7. 

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Debit $ 28,000 Cash Accounts Receivable 65,000 Inventory 90,000 Buildings and Equipment (net) 210,000 Cost of Goods Sold 105,000 Depreciation Expense 24,000 Other Operating Expenses Dividends Declared Accounts Payable Notes Payable Common Stock Retained Earnings Sales Total 31,000 15,000 $568,000 Credit $ 33,000 120,000 90,000 130,000 195,000 $568,000