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.