. Mendol Corporation purchased 100% of the common stock of Carbury Inc. on January 2, 2014. Carnac's balance sheet on January 2, 2014 was as follows:

Mendol	Carbury Inc.
Accounts receivable-net	$ 720,000	$180,000
Inventory	1,440,000	360,000
Land	160,000	40,000
Building-net	240,000	60,000
Equipment-net	320,000	80,000
Equity Investment	560,000
Total Assets	$ 3,440,000	$720,000
Current liabilities	$ 280,000	$70,000
Long term debt	640,000	160,000
Common stock ($1 par)	80,000	20,000
Paid-in capital	1,720,000	430,000
Retained earnings	720,000	40,000
Total Liabilities & Equity	$ 3,440,000	$720,000

Fair values agree with book values except for inventory, land, and equipment that have fair values of $400,000, $50,000 and $70,000, respectively. Carbury has unrecorded patent rights valued at $20,000.

Required:

a.	Prepare a schedule to allocate the purchase price to Carbury's assets and liabilities assuming Mendol paid $560,000 cash for the acquisition.
b.	Prepare the consolidation worksheet with entries for a January 2, 2014 consolidated balance sheet.