Balance sheets for Prego Company and Sprague Company as of December 31, 2023, follow:

The fair values of Sprague Company’s assets and liabilities are equal to their book values.

Required:
Prepare a consolidated balance sheet as of January 1, 2024, under each of the following assumptions:
A. On January 1, 2024, Prego Company purchased 90% of the outstanding common stock of Sprague Company for $594,000.
B. On January 1, 2024, Prego Company exchanged 11,880 of its $20 par value common shares with a fair value of $50 per share for 90% of the outstanding common shares of Sprague Company. The transaction is a purchase.

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Cash Accounts receivable (net) Inventory Property and equipment (net) Land Total assets Prego Company $ 700,000 892,000 544,000 $1,927,000 120,000 $4,183,000 Sprague Company $111,000 230,000 60,000 $468,000 94,000 $963,000