Pepper Company acquired all of Salt Corporation's stock on January 1, 20X6 for $150,000 cash. On December 31, 20X7, the balance sheets of the two companies showed the following amounts:

	Pepper Company					Salt Corporation
Cash		$	55,000				$	25,000
Accounts Receivable			60,000					30,000
Land			80,000					45,000
Buildings and Equipment			300,000					200,000
Less: Accumulated Depreciation			(150,000	)				(80,000	)
Investment in Salt Corporation			155,000
Total Assets		$	500,000				$	220,000
Accounts Payable		$	40,000				$	15,000
Taxes Payable			20,000					15,000
Notes Payable			75,000					50,000
Common Stock			100,000					50,000
Retained Earnings			265,000					90,000
Total Liabilities and Equity		$	500,000				$	220,000
Salt Corporation reported retained earnings of $75,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of five years from the date of acquisition. Required: 1) Give the appropriate consolidating entry or entries needed to prepare a consolidated balance sheet as of December 31, 20X7. 2) Prepare a consolidated balance sheet worksheet as of December 31, 20X7.