Maple Company acquired all of the outstanding voting common stock of Dodd Company on January 2, 1999, for \(\$ 4,320,000\). On the date of acquisition, the balance sheets for the two companies were as follows:

The management of Maple Company thinks that the Dodd Company's land is undervalued by \(\$ 162,000\). The remainder of the excess of cost over book value is due to superior earnings potential.
On the date of acquisition, Dodd Company borrowed \(\$ 180,000\) from Maple Company by giving a note.

a. Prepare a work sheet for a consolidated balance sheet as of the date of acquisition \section*{Problem 14-3}
Prepare equity method entries for an investment and eliminating entries for consolidated work sheet \section*{Problem 14-4}
Prepare equity method entries for an investment \section*{Required}

b. Prepare a consolidated balance sheet for January 2, 1999.

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Cash.. Assets Maple Company Dodd Company $ 900,000 $ 270,000 Accounts receivable, net Notes receivable. Merchandise inventory 432,000 360,000 180,000 108,000 1,368,000 864,000 Investment in Dodd Company 4,320,000 Equipment, net 1,224,000 738,000 Buildings, net 3,330,000 1,656,000 Land. 1,404,000 450,000 Total assets $13,158,000 $4,446,000 Liabilities and Stockholders' Equity Accounts payable $ 792,000 $ 360,000 Notes payable. 216,000 Common stock-$120 par value 9,540,000 252,000 3,564,000 Retained earnings 2,610,000 270,000 Total liabilities and stockholders' equity $13,158,000 $4,446,000