PREPARE CONSLIDATED BALANCE SHEET (write the process step)

On January 1, 2016, Mignonne Corporation paid $2,850,000 in cash for a 100 percent interest in Petite

Corporation when Petite's common stock was at $2,000,000 and retained earnings were at $500,000.

Equipment with a five-year remaining useful life was undervalued by $350,000.

Comparative balance sheet data for Mignonne and Petite Corporations at December 31, 2016,

are as follows (in thousands)

Mignonne Petite Assets Cash $104 $70 Receivables-net 300 250 Inventories 900 850 Land 500 300 Equipment-net 1,500 1,200 Investment in Petite 2,786 $6.090 $2.670 Equities Accounts payable $500 $120 Common stock, $10 par 4.000 2,000 Retained earnings 1.590 550 $6.090 $2.670