On 1/01/16 Chandler Corp. purchased 100% of the stock of Hosterman Corp. (80,000 shares) for $4,800,000. Hosterman continues to operate as a separate legal corporation. Hosterman presented the following condensed year-end balance sheet at 12/31/2015 (in 1,000s):

Assets: Liabilities & Stockholders Equity:

Cash $ 300 Accounts Payable $ 100

Inventory 1,000 Long-term Debt 200 $ 300

Operating Assets (net) 3,000 Paid-In Capital 2,000

Retained Earnings 2,000 4,000

Total Assets $4,300 Total Liabilities & Stockholders Equity $ 4,300

All assets and liabilities of Hosterman had fair values equal to their book values at 1/1/16 except for equipment that was undervalued by $ 400,000 (fair value=$800,000 and its book value=$400,000) with a remaining life of 8 years.

Immediately after the acquisition, Chandler provided the following balance sheet (in 1,000s):

Assets: Liabilities & Stockholders Equity:

Cash $ 1,000 Accounts Payable $1,400

Inventory 7,000 Long-term Debt 4,000 $ 5,400

Operating Assets (net) 8,600 Paid-In Capital 4,000

Investment in Hosterman 4,800 Retained Earnings 12,000 16,000

Total Assets $21,400 Total Liabilities & Stockholders Equity $ 21,400

Required: Provide a consolidated balance sheet at 1/01/16 for the consolidated entity (Chandler and Hosterman).