$1$ THIS PROBLEM IS ADAPTED FROM ONE OF THE PROBLEMS AT THE END OF CHAPTER $5$

On January $2,2025,$ Radnor Corporation acquired $75$ percent of Timon Company's outstanding common stock. At that date, the fair value of the noncontrolling interest was $$180,000.$ The two companies continued to operate as separate entities subsequent to the combination.

Immediately after the combination, the book values and fair values of the companies' assets and liabilities were as follows:

$\backslash$table$[[,$Radnor Corporation,Timon Company$],[$Assets$,$Book Value,Fair Value,Book Value,Fair Value$],[$Cash$,,,,],[$Receivables$,45,000,41,000,13,00035,000,13,00032,000],[$Allowance for Bad Debts,$(3,000),,35,000(3,000),],[$Inventory$,90,000,87,000,75,000,78,000],[$Buildings & Equipment,$55,000,200,000,60,000,72,000],[$Accumulated Depreciation,$945,000,625,000,690,000,550,000],[$Patent$,(350,000),,(230,000),],[$Investment in Timon Company,$540,000,,,45,000],[$Total Assets,$1,342,000,973,000,640,000,790,000],[$Liabilities & Equity,,,,$],[$Accounts payable,$40,000,,,],[$Bonds Payable,$705,000,200,000,150,000,28,000150,000],[$Bond Premium,$15,000,,,],[$Common Stock,$350,000,,250,000,],[$Additional Paid$-$in Capital,$125,000,,140,000,],[$Retained Earnings,$107,000,,72,000,],[$Total Liabilities & Equity,$1,342,000,,640,000,],[,,,,]]$

REQUIREMENTS FOR THIS PROBLEM

A$.$ Record the applicable journal entries for consolidation worksheet to prepare a consolidated balance sheet immediately following the business combination

B$.$ Prepare and complete a consolidated worksheet for Radnor and Timon as of January $2,2025,$ date of combination

C$.$ Complete a consolidated balance sheet for Radnor and Timon as of January $2,2025$

$\backslash$table$[[,$B$,$C$,$D$,$E$,$F$,,],[1,,,$Radnor,Timon,Consolidation Entries,H$],[2,,,,,],[19,$BALANCE SHEET,,Corp,Company,DR$,$CR$,$Consolidation$],[20,$Cash,,,,,,$],[21,$Accounts receivable,,$20,000,13,000,,,33,000],[22,$Less: allowance for bad debts,,$(3,000,35,000,,,80,000],[23,$Inventory,,$(3,000),(3,000),,,(6,000)$