On January 1, 2016, Gem Company purchased for $392,000 cash a 70% stock interest in Alpine, Inc., which then had common stock of $420,000 and retained earnings of $140,000. Balance sheets of the two companies immediately after the acquisition were as follows:

At the time of Gem's investment, the fair values of Al pine's assets and liabilities were equal to their book values.

REQUIRED

Prepare the consolidated balance sheet on the acquisition date; include a column for consolidating adjustments (see Exhibit 12.7 for guidance)

Exhibit 12.7:

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Gem Alpine Current assets... Stock investment-Controlling (Alpine) Plant and equipment (net) $258.000 $160,000 ... 392.000 ... 265,000 460,000 Total assets $915,000 S620,000