Potash Company owns 100 percent of the common stock of Bortz Corporation, which it acquired on December 31, 20X4, at underlying book value. Potash uses the equity method in accounting for its investment in Bortz. On December 31. 20X6, Potash sold equipment with a book value of \(\$ 85,000\) to Bortz for \(\$ 110,000\). Bortz made immediate payment of \(\$ 93,000\) and will pay the remainder on March 15, 20X7. Balance sheet data on January 1, 20X7, are as follows:

\section*{Required}
Prepare a consolidated balance sheet for Potash Company as of January 1, 20X7.

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Potash Company Cash $ 50,000 Accounts Receivable 110.000 Bort: Corporation $ 35,000 60,000 Merchandise Inventory 95.000 75.000 Equipment (net) 230,000 105.000 Investment in Bortz Corporation Stock 140.000 Total Assets $625.000 $275,000 Accounts Payable $ 82.000 $ 28.000 Notes Payable 200,000 107.000 Common Stock 180.000 50,000 Additional Paid-In Capital 25.000 Retained Earnings 163.000 65.000 Total Liabilities and Stockholders' Equity $625,000 $275.000