bn January 1, 2016, Rand Corp. issued shares of its common stock to acquire all of the outstanding common stock of Spaulding Inc. Spaulding's book value was only $140,000 at the time, but Rand issued 12,000 shares having a par value of $1 per share and a fair value of $20 per share. Rand was willing to convey these shares because it felt that buildings (ten-year life) were undervalued on Spaulding's records by $60,000 while equipment (five-year life) was undervalued by $25,000. Any consideration transferred over fair value of identified net assets acquired is assigned to goodwill. Following are the individual financial records for these two companies for the year ended December 31, 2019. Revenues Expenses Equity in subsidiary earnings Net income Rand Corp. $ 372,000 (264,000) 25,000 $ 133,000 Spaulding Inc. $108,000 (72,000) 0 $ 36,000 Retained earnings, January 1, 2019 Net income (above) Dividends paid Retained earnings, December 31, 2019 $ 765,000 133,000 (84,000) $ 814.000 $102,000 36,000 (24,000 $114.000 Current assets Investment in Spaulding Inc. Buildings (net) Equipment (net) Total assets $ 150,000 242,000 525,000 389,250 $1,306,250 $ 22,000 0 85,000 129.000 $236.000 Liabilities Common stock Additional paid-in capital Retained earnings, December 31, 2019 (above) Total liabilities and stockholders' equity $ 82,250 360,000 50,000 814,000 $1.306.250 $ 50,000 72,000 0 114,000 $236.000 Required: Prepare a consolidation worksheet for this business combination