On December 31, 2014, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included 50,000 newly issued Pacifica common shares ($20 market value, $5 par value) and an agreement to pay an additional $130,000 cash if Seguros meets certain project completion goals by December 31, 2015. Pacifica estimates a 50 percent probability that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money. Immediately prior to the acquisition, the following data for both firms were available:

		Seguros
	Pacifica	Book Values
Revenues	$ (1,200,000)
Expenses	875,000
Net Income	$ (325,000)
Retained earnings, 1/1/14	$ (950,000)
Net Income	(325,000)
Dividends Declared	90,000
Retained earnings 12/31/14	$ (1,185,000)
Cash	110,000	85,000
Receivables and Inventory	750,000	190,000
Property, plant and equipment	1,400,000	450,000
Trademarks	300,000	160,000
Total Assets	$ 2,560,000	$ 885,000
Liabilities	$ (500,000)	$ (180,000)
Common Stock	(400,000)	(200,000)
Additional paid in capital	(475,000)	(70,000)
Retained earnings	(1,185,000)	(435,000)
Total liabilities and equities	$(2,560,000)	$ (885,000)

In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $100,000. Although not yet recorded on its books, Pacifica paid legal fees of $15,000 in connection with the acquisition and $9,000 in stock issue costs.

Prepare the following:

1. Pacificas entries to account for the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs. (Use a 0.961538 present value factor where applicable.)

2. A postacquisition column of accounts for Pacifica

3. A worksheet to produce a consolidated balance sheet as of December 31, 2014