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 $959,400 933,520 175,190 $2,068,110 Total assets Liabilities Common stock, $20 par value Other contributed capital Retained earnings $783,350 904,900 466,430 17,930 2,172,610 104,500 $2,068,110 Total Less treasury stock at cost, 5,225 shares Total equities