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:

Sunny

Maria

Richard

Cash

$$176,000$

$ $45,000$

$$16,100$

Accounts receivable

$33,000$

$33,000$

$27,500$

Notes receivable

$15,500$

$-0-$

$-0-$

Merchandise inventory

$107,000$

$40,000$

$14,500$

Prepaid insurance

$13,200$

$2,500$

$800$

Advances to Maria Company

$14,500$

Advances to Richard Company

$4,800$

Land

$244,000$

$47,000$

$16,100$

Buildings $($net$)$

$106,000$

Equipment $($net$)$

$42,000$

$10,600$

$28,000$

$16,900$

$2,400$

Total

$$756,000$

$$206,100$

$$94,300$

Accounts payable

$$25,000$

$$21,600$

$$11,200$

Income taxes payable

$33,500$

$10,500$

$-0-$

Notes payable

$-0-$

$5,500$

$11,200$

Bonds payable

Common stock, $$10$ par value

$-0-$

$153,000$

$43,000$

$-0-$

Other contributed capital

$165,000$

$12,500$

$37,000$

Retained earnings $($deficit$)$

$132,500$

$3,000$

$(8,100)$

Total

$$756,000$

$$206,100$

$$94,300$

The following additional information is relevant.

$1.$ One week before the acquisitions, Sunny Company had advanced $$14,500$ to Maria Company and $$4,800$ to Richard Company. Mar$$a Company recorded an increase to Accounts Payable for its advance, but Richard Company had not recorded the transaction.

$2.$ 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.

$3.$ Sunny Company exchanged $13,300$ shares of its common stock with a fair value of $$13$ per share for $95\%$ of the outstanding common stock of Mar$$a Company. In addition, stock issue fees of $$5,000$ were paid in cash. The acquisition was accounted for as a purchase.

$4.$

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

$5.2,750$ dollars of Maria Company's notes payable and $$10,200$ of Richard Company's notes payable were payable to Sunny Company.

$6.$ Assume that for Mar$$a$,$ 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.Prepare a consolidated balance sheet at the date of acquisition for Sunny Company and its subsidiaries. $($Round answers to $0$

decimal places, e$.$g$.125.$ List assets in order of liquidity. List Property plant and equipment in order of land, bujldings and equjpment$)$

SUNNY COMPANY AND SUBSIDIARIES

Consolidated Balance Sheet

February $1,2024$

Assets

$

Liabilities and Stockholders' Equity