Pepper Company acquired all of Salt Corporations outstanding shares on December

31, 2017 for $750,000 cash. Pepper will operate Salt as a wholly owned

subsidiary with a separate legal and accounting identity. Although many of Salts

book values approximate fair values, several of its accounts have a fair values that

differ from book values. In addition, Salt has internally developed assets that remain

unrecorded on its books. In deriving the acquisition price, Pepper assessed Salts

fair and book value differences as follows:

Account	Book Values	Fair Values
Patented Technology	$155,000	$237,000
Customer List	$0	$180,000
In-process R&D	$0	$200,000
Machinery	$105,000	$95,000
Notes Payable	($50,000)	($52,000)

Required: Complete the consolidation worksheet for Pepper and Salt at December 31, 2017.