Rayburn Company purchased all of Kanodia Company's common stock for cash on January 1, at which time the separate balance sheets of the two corporations appeared as follows:

During purchase negotiations, Rayburn determined that the appraised value of Kanodia's Other Assets was \(\$ 720,000\); and, all of its remaining assets and liabilities were appraised at values approximating their book values. The remaining \(\$ 40.000\) of the purchase price was ascribed to goodwill. Prepare the consolidating adjustments and the consolidated balance sheet at acquisition.

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Rayburn Company Kanodia Company Consolidating Adjustments Consolidated Investment in Kanodia.... $ 600,000 Other assets. 2,300,000 $700,000 Goodwill. Total assets. $2,900,000 $700,000 Liabilities... $ 900,000 $160.000 Contributed capital... 1,400,000 300,000 Retained earnings 600,000 240,000 Total liabilities and equity.. $2,900,000 $700,000