Exercise 3-5 Pool Company purchased 90% of the outstanding common stock of Spruce Company on December 31, 2014, for cash. At that time the balance sheet of Spruce Company was as follows: Current assets Plant and equipment Land $946,200 951,930 184,760 $2,082,890 Total assets Liabilities Common stock, $20 par value Other contributed capital Retained earnings $857,320 827,500 418,310 70,760 2,173,890 91,000 $2,082,890 Total Less treasury stock at cost, 4,550 shares Total equities