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On January 1, 2021. James Corporation exchanged $3,050,000 cash for 100 percent of the outstanding voting stock of Johnson Corporation, James plans to maintain Johnson as a wholly owned subsidiary with separate legal status and accounting information systems At the acquisition date, James prepared the following fair value allocation schedule Consideration transferred for Johnson Corporation Johnson's carrying anount Less: Johnson's pre-existing goodwill Identifiable net assets carrying amount Excess consideration transferred over carrying amount of identifiable net assets to Johnson's patents (undervalued) to new goodwill from Johnson acquisition indefinite life) $3,850,000 $2,300,000 (75,000) 2,225,000 $825,000 800,000 5 25,000 Immediately after closing the transaction, James and Johnson prepared the following postacquisition balance sheets from their separate financial records. Accounts Cash Accounts receivable Inventory Investment in Johnson Patents Trademarks Goodwill James Johnson $ 245,000 110,000 1,830,000 360,000 3,500,000 280,000 3,050,000 7,890,000 1,000,000 3 3,200,000 150,000 75,000 $ 15,775,000 $5,025,000 Total assets Accounts payable Long-term debt Common stock Additional paid-in capital Retained earnings Total Liabilities and equities $ (100,000) S (515,000) 14,300,000) (2,210,000) (5,800,000) (1,000,000) (200,000) (6,375,000) (1,100,000) $(15,775,000) $(5,025,000) Prepare an acquisition-date consolidated balance sheet for James Corporation and its subsidiary Johnson Corporation. (For accounts where multiple consolidation entries are required.combine all debit entries into one amount and enter this amount in the debit Prepare an acquisition date consolidated balance sheet for James Corporation and its subsidiary Johnson Corporation. (For accounts where multiple consolidation 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. Negative amounts should be indicated by a minus sign.) JAMES CORPORATION AND CONSOLIDATED SUBSIDIARY JOHNSON CORPORATION Consolidated Balance Sheet January 1, 2021 Consolidation Entries James Johnson Debit Credit Consolidated Cash $ 245,000 $ 110,000 Accounts receivable 1.830,000 360,000 Inventory 3,500,000 280,000 Investment in Johnson 3,050,000 0 Patents 7,000,000 1.000.000 Trademarks 0 3,200,000 Goodwill 150,000 75,000 Total assets $ 15,775,000 $ 5,025,000 $ 0 Accounts payable $ (100,000) $ (515,000) Long-term debt (4,300,000) (2,210,000) Common stock (5,000,000) (1.000.000) Additional paid-in capital 0 (200,000) Retained earnings (6.375,000) (1.100.000) Total liabilities and equities (15.775,000) $ (5,025,000) $ 0