Teresa Corporation acquired all the voting shares of Sally Enterprises on January 1, 20X4. Balance sheet amounts for the companies on the date of acquisition were as follows:

Sally Enterprises€™ buildings and equipment were estimated to have a market value of $175,000 on January 1, 20X4. All other items appeared to have market values approximating current book values.

Required
a. Complete a consolidated balance sheet worksheet for January 1, 20X4.
b. Prepare a consolidated balance sheet in goodform.

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Enterprises 3 Cash & Receivables Buildings & Equipment Investment in Sally Enterprises Total Debits 2 Accumulated Depreciation Accounts Payable Notes Payable Retained Earnings