On January 1, 2017, Adora Corporation acquired 100 percent of the outstanding voting stock of Alvah Corporation for $2,099,600 cash. On the acquisition date, Alvah had the following balance sheet: Cash $ 152,000 Accounts payable $ 184,000 Accounts receivable 137,000 Long-term debt 985,000 Land 730,000 Common stock 1,049,000 Equipment (net) 1,942,000 Retained earnings 743,000 $ 2,961,000 $2,961,000 At the acquisition date, the following allocation was prepared: $2,099,600 1,792,000 307,600 Fair value of consideration transferred Book value acquired Excess fair value over book value To in-process research and development To equipment (B-year remaining life) To goodwill (indefinite life) $ 44,000 133, 600 177,600 130,000 $ llo Although at acquisition date Adora had expected $44,000 in future benefits from Alvah's in-process research and development project, by the end of 2017, it was apparent that the research project was a failure with no future economic benefits. On December 31, 2018, Adora and Alvah submitted the following trial balances for consolidation. There were no intra-cntity payables on that date. Adora Alvab Sales $ (3,795, 200) $(1,166,250) Cost of goods sold 1,810,000 745,000 Depreciation expense 335,000 147,000 Other operating expenses 223,000 37,250 Subsidiary income (220, 300) 0 Net income $ (1,647,500) (237,000) Retained earnings 1/1/18 $ (3,052,500) $ (936,000) Net income (1,647,500) (237,000) Dividends declared 300,000 26, 225 Retained earnings 12/31/18 $ (4,400,000) $(1,146,775) Cash 110,025 6,275 Accounts receivable 937,000 164,000 Inventory 908,000 613,000 Investment in Gaugerite 2,425,975 0 Land 3,120,000 760,000 Equipment (net) 5,180,000 1,942,500 Goodwill 354,000 0 Total assets $ 13,035,000 $ 3,485,775 Accounts payable $ (220,000) $ (455,000) Long-term debt $ (3,265,000) (835,000) Common stock (5,150,000) (1,049,000) Retained earnings 12/31/18 (4,400,000) (1,146,775) Total liabilities and equity $(13,035,000) $ (3,485,775) S $ a. Show how Adora derived its December 31, 2018, Investment in Alyah account balance. b. Prepare a consolidated worksheet for Adora, and Alxah as of December 31, 2018