Penny Manufacturing Company acquired 75 percent of Saul Corporation stock at underlying book value. At the date of acquisition, the fair value of the noncontrolling interest was equal to 25 percent of Saul's book value. The balance sheets of the two companies for January 1, 20X1, are as follows: Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Saul Corporation Total Assets Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets PENNY MANUFACTURING CORPORATION Balance Sheet January 1, 20x1 $ 229,500 Accounts Payable Bonds Payable 68,000 Common Stock 117,000 611,000 (142,000) 240,000 $1,123,500 Additional Paid-In Capital Retained Earnings $ 761,000 Total Liabilities & Equities SAUL CORPORATION Balance Sheet January 1, 20x1 $ 67,000 Accounts Payable Bonds Payable 108,000 197,000 611,000 (222,000) Common Stock ($10 par) Additional Paid-In Capital Retained Earnings Total Liabilities & Equities 133,500 390,000 180,000 30,000 390,000 $1,123,500 $ $151,000 290,000 100,000 30,000 190,000 $761,000