Patel Company purchased all the outstanding common stock of Singh Company on December 31, 2014. Just before the purchase, the condensed balance sheets of the two companies were as follows. :

Patel Company Singh Company Current assets $1,478,000 $379,000 Plant and equipment (net) 1,882,000 351,000

$3,360,000 $730,000 Current liabilities $ 870,000 $ 90,000 Common stock 1,947,000 360,000 Retained earnings 543,000 280,000

$3,360,000 $730,000 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 worksheet at December 31, 2014.

(c) Prepare a consolidated balance sheet at December 31, 2014.