Crandic Company and Modest Corporation joined together on January 1, 20X2, in a business combination treated as a pooling of interests. Simplified trial balances for the two companies on December \(31,20 \times 2\), are as follows:

The pooling of interests was accomplished by Crandic Company's issuing 3,500 shares of its \(\$ 20\) par value stock to acquire 100 percent of the \(\$ 10\) par value shares of Modest Corporation.
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a. Determine the amounts to be reported in the consolidated balance sheet immediately following the business combination for each of the following:
(1) Common stock.
(2) Additional paid-in capital.
(3) Retained earnings.
(4) Investment in Modest Corporation.

b. What amount of total assets will be reported in the consolidated balance sheet as of December 31, 20X2?

c. If comparative statements for \(20 \mathrm{X} 1\) and \(20 \times 2\) are prepared, what portion of the \(20 \mathrm{X} 1\) income statement data for Modest Corporation will be included in the consolidated income statement? Explain.

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Crandic Company Modest Corporation Debit Credit Debit Credit Current Assets $136.000 $110,000 Noncurrent Assets 400,000 150.000 Investment in Modest Corporation 210,000 Cost of Goods Sold 60.000 30.000 Other Expenses 18.000 10,000 Dividends Declared 15,000 10.000 Current Liabilities $159,000 $ 50.000 Common Stock 270.000 100.000 Additional Paid-In Capital 112.000 20,000 Retained Earnings 188.000 80.000 Sales 90,000 60.000 Income from Subsidiary 20.000 Total $839,000 $839,000 $310.000 $310.000