Consolidation of Financial Information 87 36. On January 1, 2021, James Corporation exchanged $3,050,000 cash for 100 percent of the out- standing voting stock of Johnson Corporation. James plans to maintain Johnson as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, James prepared the following fair-value allocation schedule: Consideration transferred for Johnson Corporation $3,050,000 Johnson's carrying amount $2,300,000 Less: Johnson's pre-existing goodwill (75,000) Identifiable net assets carrying amount 2,225,000 Excess consideration transferred over carrying amount $ 825,000 of identifiable net assets to Johnson's patents (undervalued). 800,000 to new goodwill from Johnson acquisition (indefinite life).. $ 25,000 Immediately after closing the transaction, James and Johnson prepared the following postacquisi- tion balance sheets from their separate financial records. James Johnson $ 110,000 360.000 280.000 Accounts Cash Accounts receivable Inventory Investment in Johnson Patents Trademarks Goodwill Total assets $ 245,000 1,830,000 3,500,000 3,050,000 7,000,000 -0- 150,000 $ 15,775,000 1,000,000 3,200,000 75,000 $5.025.000 Accounts payable Long-term debt Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ (100,000) (4,300,000) (5,000,000) -O- (6.375.000) $(15.775,000 $ (515,000) (2.210,000) (1,000,000) (200,000) (1.100,000) $(5,025,000) Prepare an acquisition-date consolidated balance sheet for James Corporation and its subsidiary Johnson Corporation