On February $1,2024,$ Sunny Company purchased $95\%$ of the outstanding common stock of Maria Company and $85\%$ of the outstanding

common stock of Richard Company. Immediately before the two acquisitions, balance sheets of the three companies were as follows:

The following additional information is relevant.

One week before the acquisitions, Sunny Company had advanced $$14,500$ to Maria Company and $$4,800$ to Richard Company.

Maria Company recorded an increase to Accounts Payable for its advance, but Richard Company had not recorded the

transaction.

On the date of acquisition, Sunny Company owed Maria Company $$12,300$ for purchases on account, and Richard Company

owed Sunny Company $$4,500$ and Maria Company $$5,700$ for such purchases. The goods purchased had all been sold to

outside parties prior to acquisition.

Sunny Company exchanged $13,300$ shares of its common stock with a fair value of $$13$ per share for $95\%$ of the outstanding

common stock of Maria Company. In addition, stock issue fees of $$5,000$ were paid in cash. The acquisition was accounted for as

a purchase.

Sunny Company paid $$52,700$ cash for the $85\%$ interest in Richard Company.

$2,750$ dollars of Maria Company's notes payable and $$10,200$ of Richard Company's notes payable were payable to Sunny

Company.

Assume that for Maria, any difference between book value and the value implied by the purchase price relates to subsidiary

land. However, for Richard, assume that any excess of book value over the value implied by the purchase price is due to

overvalued buildings.

List of Accounts

Accounts Payable

Accounts Receivable

Bonds Payable

Buildings

Cash

Common Stock

Equipment

Goodwill

Income Tax Payable

Inventory

Land

Long$-$term Notes Payable

Merchandise Inventory

Mortgage Payable

No Entry

Noncontrolling Interest

Note Payable

Notes Receivable

Other Contributed Capital

Plant and Equipment

Prepaid Insurance

Retained Earnings