On January 1, 2011, Rand Corp. issued shares of its common stock to acquire all of the outstanding common stock of Spaulding Inc. Spaulkding's book vahue was only $140,000 at the time, but Rand issued 12.000 shares having a par value of S1 per share and a fair vakue of S20 per share. Rand was willing to convey these shares because it felt that buildimgs (ten-year life) were undervalued on Spaulding's records by $60,000 while equipment (five-year life) was undervalued by $25,000. Any consideration transferred over fair value of identified net assets acquired is assigned to goodwill. 5. Following are the individual financial records for these two companies for the year ended December 31, 2014. December 31,2014. RandSpaulding Corp. Inc. s 372,000 108,000 Revenues Expenses Equity in subsidiary earnings Net income (264.000) (72.000) 300 310.03 Retained earnings, January 1, 2014 Net income (above) Dividends paid Retained earnings, December 31, 2014 S 765,000 S102.000 (84,000 4,000) s 150,000 22,000 133,000 Current assets Investment in Spaulding Inc. Buildings (net) Equipment (net) Total assets 242,000 525,000 85,000 389.250 129000 51 306250 $236.000 s 82250 60,000 S 50,000 72,000 Liabilities Common stock Additional paid-in capital Retained eamings, December 31, 2014 (above) 814.000 114.000 Total liabilities and stockholders' equity S1 306.250 $236.000 Required Prepare a consolidation worksheet for this business combination. Consolidation Worksheet for Rand and Spaulding