Pot Inc. acquired all Seed Inc.'s outstanding $29 par common stock on December 31, 20X3, in exchange for 43,000 shares of its $29 par common stock. Pot's common stock closed at $58.50 per share on a national stock exchange on December 31, 20X3. Both corporations continued to operate as separate businesses maintaining separate accounting records with years ending December 31. On December 31, 20X4, after year-end adjustments and the closing of nominal accounts, the companies had condensed balance sheet accounts. Pot Inc. Seed Inc. Assets Cash Accounts & Other Receivables Inventories Land Depreciable Assets (net) Investment in Seed Inc. Long-Term Investments & Other Assets Total Assets $ 840,000 2,158,000 2,323,000 664,000 4,588,000 2,853,500 867,000 $14,293,500 $ 340,000 855,000 1,047,000 316,000 1,981,000 401,000 $4,940,000 Liabilities and Stockholders' Equity Accounts Payable and Other Current Liabilities Long-Term Debt Common Stock, $ 29 Par Value Additional Paid-In Capital Retained Earnings Total Liabilities and Stockholders' Equity $ 2,456,000 1,891,000 3,445,000 1, 268,500 5,233,000 $14,293,500 $1,129,000 1,287,000 1,247,000 178,000 1,099,000 $4,940,000 Additional Information 1. Pot uses the equity-method of accounting for its investment in Seed. 2. On December 31, 20X3, Seed's assets and liabilities had fair values equal to the book balances with the exception of land, which had a fair value of $645,500. Seed had no land transactions in 20X4. 3. On June 15, 20X4, Seed paid a cash dividend of $6 per share on its common stock. 4. On December 10, 20X4, Pot paid a cash dividend totaling $272,000 on its common stock. 5. On December 31, 20X3, immediately before the combination, the stockholders' equity balance was: Pot Inc. $2,198,000 Seed Inc. $1,247,000 Common Stock 1. Pot uses the equity-method of accounting for its investment in Seed. 2. On December 31, 20X3, Seed's assets and liabilities had fair values equal to the book balances with the exception of land, which had a fair value of $645,500. Seed had no land transactions in 20X4. 3. On June 15, 20X4, Seed paid a cash dividend of $6 per share on its common stock. 4. On December 10, 20X4, Pot paid a cash dividend totaling $272,000 on its common stock. 5. On December 31, 20X3, immediately before the combination, the stockholders' equity balance was: Common Stock Additional Paid-In Capital Retained Earnings Pot Inc. $2,198,000 1,647,000 4,012,000 $7,857,000 Seed Inc. $1,247,000 178,000 761,000 $2,186,000 6. The 20x4 net income amounts according to the separate books of Pot and Seed were $897,000 (exclusive of equity in Seed's earnings) and $596,000, respectively. Required: Prepare a consolidated balance sheet worksheet for Pot and its subsidiary, Seed, for December 31, 20X4. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) Answer is not complete. POT INC. AND SUBSIDIARY Consolidated Balance Sheet Worksheet December 31, 20X4 Consolidation Entries Pot Inc. Seed Inc. DR CR Consolidated Assets Cash $ $ Accounts & other receivables 840,000 $ 2,158,000 2,323,000 340,000 855,000 1,047,000 1,180,000 3,013,000 3,370,000 Inventory x Answer is not complete. POT INC. AND SUBSIDIARY Consolidated Balance Sheet Worksheet December 31, 20X4 Consolidation Entries Pot Inc. Seed Inc. DR CR Consolidated Assets Cash $ 1,180,000 3,013,000 Accounts & other receivables Inventory Land $ 840,000 2,158,000 2,323,000 664,000 4,588,000 2,853,500 867,000 $14,293,500 $ 340,000 855,000 1,047,000 316,000 1,981,000 329,500 3,370,000 1,309,500 6,569,000 Depreciable assets (net) Investment in Seed Inc. Long-term investments & other assets 2,853,500 0 401,000 $ 4,940,000 1,268,000 $ 16,709,500 Total Assets $ 329,500 $ 2,853,500 Liabilities & Stockholders' Equity Accounts payable & other current liabilities Long-term debt Common stock Additional Paid-in capital Retained earnings Total Liabilities & Equity $ 2,456,000$ 1,129,000 1,891,000 1,287,000 3,445,000 1,247,000 1,268,500 178,000 5,233,000 1,099,000 $14,293,500 $ 4,940,000 1,247,000 178,000 $ 3,585,000 3,178,000 3,445,000 1,268,500 6,332,000 $ 17,808,500 $ 1,425,000 $ 0