Alarm Bird Inc. acquired an 85% interest in Clock Corporation on January 2, 2005 for $38,000 cash when Clock had Capital Stock of $15,000 and Retained Earnings of $25,000. Clocks assets and liabilities had book values equal to their fair values except for inventory that was undervalued by $2,000. Balance sheets for Alarm Bird and Clock on January 2, 2005, immediately after the business combination, are presented in the first two columns of the consolidated balance sheet working papers.

Alarm Bird Corporation and Subsidiary
Consolidated Balance Sheet Working Papers
at January 2, 2005
		Alarm Bird	Clock	Eliminations
				Debit	Credit	Balance
						Sheet
ASSETS
Cash	$	68,000	$4,000
Accounts		75,000	9,000
Receivable-net
		39,000	10,000
Inventories
		170,000	35,000
Plant assets-net
Investment in		38,000
Clock
Total Assets	$	390,000	$58,000
									EQUITIES	$	120,000	$18,000
Payables
		100,000
Capital stock			15,000
Retained		170,000
Earnings			25,000
Minority
Interest
	$
TOTAL EQUITIES		390,000	$58,000
Required:		1
Complete the consolidation balance sheet working papers for Alarm Bird and subsidiary at January 1, 2005.