CONSOLIDATED BALANCE SHEET. Peachtree Corporation acquired 100% of the outstanding common stock of Standard Company in a business combination transaction accounted for as a purchase. Immediately before the business combination, the two businesses had the following balance sheets:

REQUIRED:
1. Write the entries (if any) for Peachtree and Standard to record the business combination.
2. Prepare the balance sheet of Peachtree immediately after the business combination transaction.
3. Prepare the balance sheet of Standard immediately after the business combination transaction.
4. Calculate the amount of the adjustment to the book value of Standard Company’s equity and the amount of goodwill.
5. Prepare a consolidated balance sheet immediately after the business combination transaction.

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PEACHTREE CORPORATION STANDARD COMPANY Cash $ 3,100 Cash Equipment (net) 9,500 Equipment (net) 180 930 Total assets $12,600 Total assets $1,110 Common stock $9,100 Common stock $700 Retained earnings 3,500 Retained earnings 410 Total liabilities and equity $12,600 Total liabilities and equity $1,110 In the business combination transaction, Peachtree agreed to give Standard's share- holders $1,500 cash in exchange for all their Standard Company common shares. Stan- dard's equipment has a fair value of $1,100. Following combination, Standard continues to exist as a separate corporation.