a.	Prepare a worksheet to consolidate the financial information for these two companies. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

On January 1, 2014, Pinnacle Corporation exchanged $3,544,000 cash for 100 percent of the outstanding voting stock of Strata Corporation. On the acquisition date, Strata had the following balance sheet: 124,000 Accounts payable 450,000 Cash 2,675,000 Accounts receivable 366,000 Long-term debt 1,500,000 430,000 Common stock Inventory 1,315,000 1,895,000 Retained earnings Buildings (net) Licensing agreements 3,125,000 5,940,000 5,940,000 Pinnacle prepared the following fair-value allocation 3,544,000 Fair value of Strata (consideration transferred) Carrying amount acquired 2,815,000 Excess fair value 729,000 380,000 to buildings (undervalued) (135,000) 245,000 to licensing agreements (overvalued) 484,000 to goodwill (indefinite life)