On January 1, 2015, Casey Corporation exchanged $3,170,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems.

At the acquisition date, Casey prepared the following fair-value allocation schedule:

Fair value of Kennedy (consideration transferred)				$	3,170,000
Carrying amount acquired					2,600,000
Excess fair value				$	570,000
to buildings (undervalued)	$	324,000
to licensing agreements (overvalued)		(198,000)			126,000
to goodwill (indefinite life)				$	444,000

Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records.

Accounts	Casey				Kennedy
Cash	$	472,000			$	184,500
Accounts receivable		1,235,000				316,000
Inventory		1,470,000				165,500
Investment in Kennedy		3,170,000				0
Buildings (net)		5,820,000				1,920,000
Licensing agreements		0				3,430,000
Goodwill		799,000				0
Total assets	$	12,966,000			$	6,016,000
Accounts payable		(336,000	)			(406,000	)
Long-term debt		(3,630,000	)			(3,010,000	)
Common stock		(3,000,000	)			(1,000,000	)
Additional paid-in capital		0				(500,000	)
Retained earnings		(6,000,000	)			(1,100,000	)
Total liabilities and equities	$	(12,966,000	)		$	(6,016,000	)

Prepare a January 1, 2015, consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation.