On January 1 of the current year, Healy Company purchased all of the common shares of Miller Company for \(\$ 250,000\) cash. Balance sheets of the two firms immediately after the acquisition follow:

During purchase negotiations, Miller's plant assets were appraised at \(\$ 212,500\) and all of its remaining assets and liabilities were appraised at values approximating their book values. Healy also concluded that an additional \(\$ 22,500\) (for goodwill) demanded by Miller's shareholders was warranted because Miller's earning power was better than the industry average. Prepare the consolidating adjustments and the consolidated balance sheet at acquisition.

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Current assets Investment in Miller Plant assets, net.. Goodwill..... Total assets... Liabilities. Contributed capital. Retained earnings.. Total liabilities and equity. Healy Company $ 850,000 250,000 1,500,000 $2,600,000 $ 350,000 1,750,000 500,000 $2,600,000 Miller Company $ 60,000 205,000 $265,000 $ 45,000 200,000 20,000 $265,000 Consolidating Adjustments Consolidated