The Talbott Company purchased 80 percent of the stock of Short Company on January 1, 20X8, at underlying book value. On December 31, 20X9, Short Company purchased 10 percent of the stock of Talbott Company. Balance sheets for the two companies on December 31, 20X9, are as follows:

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Assuming the treasury stock method is used in reporting the shares of Talbott Company held by Short Company, prepare a consolidated balance sheet workpaper and consolidated balance sheet for December 31, 20X9.

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Talbott Company Condensed Balance Sheet December 31, 20X9 Cash Accounts Receivable $ 78,000 Accounts Payable $ 90,000 120,000 Bonds Payable 400,000 Inventory 150,000 Common Stock 300,000 Buildings and Equipment (net) 400.000 Retained Earnings 310,000 Investment in Short Company Common Stock 352.000 Total Assets $1,100,000 Total Liabilities and Equities $1,100,000 Short Company Condensed Balance Sheet December 31, 20X9 Cash $ 39,000 Accounts Payable $ 60,000 Accounts Receivable 80,000 Bonds Payable 100.000 Inventory 120,000 Common Stock 200,000 Buildings and Equipment (net) 300,000 Retained Earnings 240,000 Investment in Talbott Company Common Stock 61,000 Total Assets $600,000 Total Liabilities and Equities $600,000