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 $500,000 cash. Balance sheets of the two firms immediately after the acquisition follow: During purchase negotiations, Miller's plant assets were appraised at $425,000 and all of its remaining assets and liabilities were appraised at values approximating their book values. Healy also concluded that an additional $85,000 (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 negative signs with consolidating adjustment answers, when appropriate. Healy Miller Consolidating Consolidated Company Company Adjustments Balance Sheet Current assets Investment in Miller Plant assets, net $1,400,000 $80,000 0 $ 0 500,000 0 0 3,000,000 410,000 0 0 Goodwill 0 0 Total assets $4,900,000 $490,000 $ 0 Liabilities Contributed capital Retained earnings $700,000 $90,000 3,200,000 360,000 1,000,000 40,000 0 $ 0 0 0 0 0 Total liabilities & stockholders' equity $4,900,000 $490,000 $ 0