35. Allen Company acquired 100 percent of Bradford Company's voting stock on January 1, 2014 by issuing 10.000 shares of its $10 par value common stock (having a fair value of S14 per share). As of that date, Bradford had stockholders' equity totaling $105,000. Land shown on Bradford's accounting records was undervalued by $10.000. Equipment (with a five-year remaining life) was undervalued by $5,000. A secret formula developed by Bradford was appraised at $20,000 with an estimated life of 20 years. Following are the separate financial statements for the two companies for the year ending December 31, 2018. There were no intra-entity payables on that date. Credit balances are indicated by parentheses. Revenues. Cost of goods sold ....... Depreciation expense..... Subsidiary earnings Net income.......... Retained earnings, 1/1/18..... Net income (above) .............. Dividends declared. Retained earnings, 12/31/18.. Current assets Investment in Bradford Company ... Land.. Buildings and equipment (net) ..... Total assets ..... Allen Company $ (485.000) 160,000 130,000 (66,000) $ (261.000) $ (659,000) (261,000) 175,500 $ (744,500) 268,000 216.000 427,500 713.000 $ 1,624,500 $ (190,000) (600.000) (90,000) (744,500) $(1,624,500 Bradford Company $(190,000) 70,000 52,000 -0- $ (68.000) $ (98,000) (68,000) 40,000 $(126,000 $ 75,000 -0- 58,000 161,000 $ 294,000 $(103,000) (60,000) (5.000) (126.000) $(294,000 Current liabilities. Common stock Additional paid-in capital........ Retained earnings, 12/31/18.... Total liabilities and equity ........ a. Explain how Allen derived the $66,000 balance in the Subsidiary Earnings account b. Prepare a worksheet to consolidate the financial information for these two companies