Exercise 2 Carrot Inc. acquired an 85% interest in Spin Corporation on January 2, 2018 for $42,500 cash when Sparrow had Capital Stock of $15,000 and Retained Earnings of $25,000. Spin's assets and liabilities had book values equal to their fair values except for inventory that was undervalued by $2,000. Balance sheets for Carrot and Spin on January 2, 2018, immediately after the business combination, are presented in the first two columns of the consolidated balance sheet working papers. Required: Complete the consolidation balance sheet working papers for Parrot and subsidiary at January 1, 2014