Constructing the Consolidated Balance Sheet at Acquisition On January 1 of the current year, Healy Company purchased all of the common shares of Miller Company for $250,000 cash. Balance sheets of the two firms immediately after the acquisition follow: During purchase negotiations, Miller's plant assets were appraised at $212,500 and all of its remaining assets and liabilities were appraised at values approximating their book values. Healy also concluded that an additional $22,500 (for goodwill) demanded by Miller's shareholders was warranted because Miller's earning power was better than the industry average.

Prepare the consolidating adjustments and the consolidated balance sheet at acquisition.

Use a negative sign with consolidating adjustment answers, when appropriate.

	Healy Company	Miller Company	Consolidating Adjustments	Consolidated Balance Sheet
Current assets	$850,000	$60,000	Answer	$Answer
Investment in Miller	250,000	-	Answer	Answer
Plant assets, net	1,500,000	205,000	Answer	Answer
Goodwill	-	-	Answer	Answer
Total assets	$2,600,000	$265,000		$Answer
Liabilities	$ 350,000	$ 45,000	Answer	$Answer
Contributed capital	1,750,000	200,000	Answer	Answer
Retained earnings	500,000	20,000	Answer	Answer
Total liabilities & stockholders' equity	$2,600,000	$265,000