Patel Company purchased all the outstanding common stock of Singh Company on December 31, 2006. Just before the purchase, the condensed balance sheets of the two companies were as follows.

Patel used current assets of $710,000 to acquire the stock of Singh. The excess of this purchase price over the book value of Patel's net assets is determined to be attributable $20,000 to Singh's plant and equipment and the remainder to goodwill.
Instructions

(a) Prepare the entry for Patel Company's acquisition of Singh Company stock.

(b) Prepare a consolidated work sheet at December 31, 2006.

(c) Prepare a consolidated balance sheet at December 31, 2006.

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Current assets Plant and equipment (net) Current liabilities Common stock Retained earnings Patel Company $1,478,000 1.882.000 $3.360,000 $ 870,000 1,947,000 543,000 $3.360.000 Singh Company $379,000 351.000 $730,000 $ 90,000 360,000 280,000 $730,000