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On January 1, 2021, James Corporation exchanged $3,050,000 cash for 100 percent of the outstanding voting stock of Johnson Corporation. James plans to maintain Johnson as a wholly owned subsidiary with separate legal status and accounting information systems.

At the acquisition date, James prepared the following fair-value allocation schedule:

Consideration transferred for Johnson Corporation		$3,050,000
Johnsons carrying amount	$2,300,000
Less: Johnsons pre-existing goodwill	(75,000)
Identifiable net assets carrying amount		2,225,000
Excess consideration transferred over carrying amount of identifiable net assets		$ 825,000
to Johnsons patents (undervalued)		800,000
to new goodwill from Johnson acquisition (indefinite life)		$ 25,000

Immediately after closing the transaction, James and Johnson prepared the following postacquisition balance sheets from their separate financial records.

Accounts	James	Johnson
Cash	$245,000	$110,000
Accounts receivable	1,830,000	360,000
Inventory	3,500,000	280,000
Investment in Johnson	3,050,000	0
Patents	7,000,000	1,000,000
Trademarks	0	3,200,000
Goodwill	150,000	75,000
Total assets	$ 15,775,000	$ 5,025,000
Accounts payable	$ (100,000)	$ (515,000)
Long-term debt	(4,300,000)	(2,210,000)
Common stock	(5,000,000)	(1,000,000)
Additional paid-in capital	0	(200,000)
Retained earnings	(6,375,000)	(1,100,000)
Total liabilities and equities	$(15,775,000)	$(5,025,000)

Prepare an acquisition-date consolidated balance sheet for James Corporation and its subsidiary Johnson Corporation.

11,0 26 On January 1, 2021, James Corporation exchanged $3,050,000 cash for 100 percent of the outstanding voting stock of Johnson Corporation James plans to maintain Johnson as a wholly owned subsidiary with separate legal status and accounting information systems At the acquisition date, James prepared the following fair value allocation schedule: Consideration transferred for Johnson Corporation Johnson's carrying amount $3,050,000 Less: Johnson's pre-existing goodwill $2,300,000 Identifiable not assets carrying amount (75000) Excess consideration transferred over carrying amount of identifiable net assets 2,225,000 to Johnson's patents (undervalued) $ 825,000 800.000 to now goodwill from Johnson acquisition (indefinite life) $ 25,000 Immediately after closing the transaction, James and Johnson prepared the following postacquisition balance sheets from their separate financial records Accounts James Johnson Cash $ 245,000 $ 110,000 Accounts receivable 1,830,000 360,000 3,500,000 280,000 Inventory 3,050,000 Investment in Johnson 7,000,000 1,000,000 Patents 3.200.000 Trademarks 150 000 75 000 Goodwill $ 15,775 000 $ 5.025 000 Total assets $ (100 000) $ (515,000 Accounts payable ta Accounts Cash Accounts receivable Inventory Investment in Johnson Patents Trademarks Goodwill Total assets Accounts payable Long-term debt Common stock Additional paid in capital Retained earnings Total liabilities and equities James $ 245,000 1,830,000 3,500,000 3,050,000 7,000,000 -0 150,000 $ 15,775,000 $ (100,000) (4,300,000) (5,000,000) Johnson $ 110,000 380,000 280,000 0 1,000,000 3,200,000 75,000 $5025000 $ (515,000) (2,210,000) (1,000,000) (200,000) (1 100 000 S(5025000) (6 375 000) $(15775000) ne sheet for James Corporation and its subsidiary Johnson Corporation