Prepare Consolidated Balance Sheet for Big Lake Bakeries which owns 100% ofMarble Falls Orchards.The fair value of Marble Falls net fixed assets are $2,675,000.

Big Lake aquired 100% of Marble Falls for 3,750,000

Fair value of fixed assets 2,675,000

Balance Sheet prior to acquistion

Big Lake Marble Falls

Current assets 4,250,000 500,000

fixed assets, net 4,500,000 1,675,000

Liabilties 350,000 125,000

Common Stock 7,500,000 1,525,000

Paid in Capital 500,000

Retained Earnings 400,000 525,000

a. Prepare purchase entry

b. Prepare consolidated journal entry to consolidate equity accounts

c. Prepare consolidated journal entry to consolidate assets