Graham Inc. acquired all of the outstanding shares of Mahoney Inc. through an exchange of common shares. The aggregate fair value of the Graham shares distributed to the Mahoney shareholders was $200,000. Further, at the time of the exchange, the fair value of Mahoneys net assets was equal to their book value, except for Mahoneys property and equipment, which was appraised at $270,000. Presented below are the pre-acquisition balance sheets of the two companies:

Pre-acquisition Balance Sheets			Graham Inc.	Mahoney Inc.
Cash			$ 30,000	$ 5,000
Accounts receivable (net)			70,000	40,000
Inventory (FIFO)			110,000	60,000
Property and equipment (net)			400,000	250,000
Other assets			20,000	10,000
			$630,000	$365,000
Accounts payable			$ 50,000	$ 12,500
Other current liabilities			50,000	7,500
Bonds payable			120,000	175,000
Common stock (no par value)			250,000	125,000
Retained earnings			160,000	45,000
			$630,000	$365,000

Prepare the consolidated balance sheet for the new company immediately following the transaction.

Remember to use negative signs with adjustment answers, when appropriate.

	Graham Inc.	Mahoney Inc.	Adjustments	Consolidated Balances
Cash	Answer	Answer	Answer	Answer
Accounts receivable (net)	Answer	Answer	Answer	Answer
Inventory (FIFO)	Answer	Answer	Answer	Answer
Property & equipment (net)	Answer	Answer	Answer	Answer
Other assets	Answer	Answer	Answer	Answer
Investment in Mahoney Inc.	Answer	Answer	Answer	Answer
Goodwill	Answer	Answer	Answer	Answer
Total assets	Answer	Answer		Answer
Accounts payable	Answer	Answer	Answer	Answer
Other current liabilities	Answer	Answer	Answer	Answer
Bonds payable	Answer	Answer	Answer	Answer
Common stock (no par value)	Answer	Answer	Answer	Answer
Retained earnings	Answer	Answer	Answer	Answer
Total liabilities & shareholders' equity