On January 1, 2021, James Corporation exchanged $3,050,000 cash for 100 percent of the outstanding voting stock of Johnson Corporation. James plans to maintain Johnson as a wholly owned subsidiary with separate legal status and accounting information systems.

At the acquisition date, James prepared the following fair-value allocation schedule:

Immediately after closing the transaction, James and Johnson prepared the following post acquisition balance sheets from their separate financial records.

Prepare an acquisition-date consolidated balance sheet for James Corporation and its subsidiary Johnson Corporation.

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$3,050,000 Consideration transferred for Johnson Corporation Johnson's carrying amount Less: Johnson's pre-existing goodwill $2,300,000 (75,000) Identiflable net assets carrying amount 2.225.000 $ 825,000 Excess consideration transferred over carrying amount of identifiable net assets to Johnson's patents (undervalued) 800,000 to new goodwill from Johnson acquisition (indefinite life) $ 25,000