On January 1, 2015 Big Company acquires 100 percent of the common stock of Small Company for consideration of $1,100,000; Small reported net assets of $700,000 at that time. Prior to the acquisition, Small Co. had its assets appraised, noting the following differences between book value and fair value:

Trademarks with an indefinite life have a fair value $200,000 higher than book value; and equipment (10-year life) has a fair value $60,000 lower than book value.

Its unpatented technology (5-year life) was worth $150,000.

Required: Below are the financial statements of each company as of December 31, 2015. Complete the consolidation worksheet below.

d DEBIT CREDIT CONSOLIDATED

	Big Co.	Small Co.
Revenues	$(2,250,000)	$(1,040,000)
Cost of goods sold	600,000	456,000
Depreciation expense	150,000	140,000
Amortization expense	50,000	0
Income from Small Co.	(420,000)	0
Net Income	(1,870,000)	(444,000)
Retained earnings, 1/1	(1,400,000)	(500,000)
Net income	(1,870,000)	(444,000)
Dividends	284,000	160,000
Retained earnings, 12/31	(2,986,000)	(784,000)
Cash	370,000	210,000
Receivables	450,000	112,000
Inventory	350,000	270,000
Investment in OBrien	1,360,000	0
Trademarks	948,000	120,000
Unpatented technology	0	0
Equipment	1,850,000	544,000
Goodwill	0	0
Total assets	5,328,000	(1,256,000)
Liabilities	(1,542,000)	(272,000)
Common stock	(800,000)	(200,000)
Retained earnings 12/31	(2,986,000)	(784,000)
Total liabilities and equity	(5,328,000)	(1,256,000)