$3.$ To verify the answers found in Part $2,$ adjust Acme's column of accounts for the journal entries in Part $1$ and then prepare a worksheet to consolidate the balance sheets of these two companies at the acquisition date. $1$

On January $1,20$X$4,$ Acme Corporation acquired $100\%$ of the outstanding common stock of Coyote, a foreign company $($amounts translated to USD$).$ To acquire these shares,

Acme issued to the owners of Coyote $$200,000$ in long$-$term liabilities and $20,000$ shares of common stock having a par value of $$1$ per share but a fair value of $$20$ per share.

Acme paid $$30,000$ to accountants, lawyers, and brokers for assistance in the acquisition and another $$12,000$ in connection with stock issuance costs.

Prior to these transactions, the balance sheets for the two companies were as follows:

Acme's appraisal of Coyote's fair values deemed three accounts to be undervalued: Inventory by $$5,000,$ Land by $$20,000,$ and Buildings by $$30,000.$ Acme plans to maintain Coyote's separate legal identity

and to operate Coyote as a wholly owned subsidiary.

acquisition date.

Prepare consolidated financial statements when goodwill is present.