Pencil Company acquired 80 percent of Stylus Corporation’s stock on January 2, 20X3, for $72,000 cash. Summarized balance sheet data for the companies on December 31, 20X2, follow:

Required

Prepare a consolidated balance sheet immediately following the acquisition.

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Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Poncil Company Book Value $200,000 400,000 $600,000 $100,000 300,000 200,000 $600,000 Fair Value $200,000 400,000 100,000 Stylus Corporation Book Value $ 50,000 120,000 $170,000 $ 80,000 50,000 40,000 $170,000 Fair Value $ 50,000 120,000 80,000