Consolidation Accounting Graham Inc. acquired all of the outstanding shares of Mahoney Inc. through an exchange of common shares. The aggregate fair value of the Graham shares distributed to the Mahoney shareholders was $400,000. Further, at the time of the exchange, the fair value of Mahoney's net assets was equal to their book value, except for Mahoney's property and equipment, which was appraised at $540,000. Presented below are the pre-acquisition balance sheets of the two companies: Pre-acquisition Balance Sheets Graham Inc. Mahoney Inc. Cash $ $ 60,000 $ 10,000 Accounts receivable (net) ) 140,000 80,000 Inventory (FIFO) 220,000 120,000 Property and equipment (net) 800,000 500,000 Other assets 40,000 20,000 $1,260,000 $730,000 Accounts payable $100,000 $ 25,000 Other current liabilities 100,000 15,000 Bonds payable 240,000 350,000 Common stock (no par value) 500,000 250,000 Retained earnings 320,000 90,000 $1,260,000 $730,000 Prepare the consolidated balance sheet for the new company immediately following the transaction. Remember to use negative signs with adjustment answers, when appropriate. Graham Inc. Mahoney Inc. Adjustments Consolidated Balances Cash $ $ 0 $ 0 $ 0 $ 0 Accounts receivable (net) 0 0 0 0 Inventory (FIFO) 0 0 0 0 0 Property & equipment (net) 0 0 0 0 0 Other assets 0 0 0 0 Investment in Mahoney Inc. 0 0 0 0 Goodwill 0 0 0 0 0 Total assets $ 0 $ 0 $ 0 Accounts payable $ 0 $ 0 0 $ 0 Other current liabilities 0 0 0 0 Bonds payable 0 0 0 0 Common stock (no par value) 0 0 0 0 0 0 Retained earnings 0 0 0 0 0 Total liabilities & shareholders' equity $ 0 $ 0 $ 0 0 LI