The following additional information is relevant.

One week before the acquisitions, Sheridan Company had advanced $$10,000$ to Mary Company and $$4,000$ to Jimmy

Company. Mary Company recorded an increase to Accounts Payable for its advance, but Jimmy Company had not recorded

the transaction.

On the date of acquisition, Sheridan Company owed Mary Company $$12,000$ for purchases on account, and Jimmy Company

owed Sheridan Company $$3,000$ and Mary Company $$5,500$ for such purchases. The goods purchased had all been sold to

outside parties prior to acquisition.

Sheridan Company exchanged $13,300$ shares of its common stock with a fair value of $$12$ per share for $95\%$ of the

outstanding common stock of Mary Company. In addition, stock issue fees of $$4,000$ were paid in cash. The acquisition was

accounted for as a purchase.

Sheridan Company paid $$42,500$ cash for the $85\%$ interest in Jimmy Company. $2,500$ dollars of Mary Company's notes payable and $$10,200$ of Jimmy Company's notes payable were payable to Sheridan

Company.

Assume that for Mary, any difference between book value and the value implied by the purchase price relates to subsidiary

land. However, for Jimmy, assume that any excess of book value over the value implied by the purchase price is due to

overvalued buildings. $($To record acquisition of Mary Co$.)$

$($To record acquisition of Jimmy Co$.)$On February $1,2024,$ Sheridan Company purchased $95\%$ of the outstanding common stock of Mary Company and $85\%$ of the

outstanding common stock of Jimmy Company. Immediately before the two acquisitions, balance sheets of the three companies were

as follows: