In the prior question, it was assumed that Big and Small legally merged and that Big issued 20,000 shares of its stock having a market value of $15 each to shareholders of Small and in return obtained all 20,000 shares of Small's stock and the merged company operated under Big's name. However, in this question, we now assume that Big will allow Small to continue to operate as a separate legal entity under its complete control. We continue to assume that Big issued 20,000 shares of its stock to Small shareholders and in return received all 20,000 shares of Small stock in the exchange. None of Small's assets was found to be mis-valued by the appraisal. Recall that Big's capital stock had a book value of $240,000 prior to the merger. Assume that you are consolidating the balance sheets of Big and Small on the date of acquisition. What is the total amount of consolidated equity that will be reported? Show your calculations. Big Small Debits Credits Consolidated Cash Receivables $100,000 $120,000 $160,000 $50,000 $60,000 |$80,000 Inventory Investment in Small |$200,000 Equipment Total Assets $100,000 $290,000 Payables $100,000 Common Stock Retained $240,000 Earnings Total Liab and Equity $50,000 $120,000 $120,000 |$290,000 In the prior question, it was assumed that Big and Small legally merged and that Big issued 20,000 shares of its stock having a market value of $15 each to shareholders of Small and in return obtained all 20,000 shares of Small's stock and the merged company operated under Big's name. However, in this question, we now assume that Big will allow Small to continue to operate as a separate legal entity under its complete control. We continue to assume that Big issued 20,000 shares of its stock to Small shareholders and in return received all 20,000 shares of Small stock in the exchange. None of Small's assets was found to be mis-valued by the appraisal. Recall that Big's capital stock had a book value of $240,000 prior to the merger. Assume that you are consolidating the balance sheets of Big and Small on the date of acquisition. What is the total amount of consolidated equity that will be reported? Show your calculations. Big Small Debits Credits Consolidated Cash Receivables $100,000 $120,000 $160,000 $50,000 $60,000 |$80,000 Inventory Investment in Small |$200,000 Equipment Total Assets $100,000 $290,000 Payables $100,000 Common Stock Retained $240,000 Earnings Total Liab and Equity $50,000 $120,000 $120,000 |$290,000