Subsidiary Acquired for Cash - Fineline Pencil Company

E3-8 Subsidiary Acquired for Cash
Fineline Pencil Company purchased 100 percent of Smudge Eraser Corporation's stock on January 2,20X3, for $150,000 cash. Summarized balance sheet data for the companies on December 31, 20X2, are
as follows:

                          Fineline Pencil            Smudge Eraser
                            Company                    Corporation
                      Book Value  Fair Value        Book Value  Fair Value
Cash                   $200,000     $200,000        $ 50,000    $ 50,000
Other Assets            400,000      650,000         120,000     180,000

Total Debits           $600,000                     $170,000

Current Liabilities    $100,000     $100,000        $ 80,000    $ 80,000
Common Stock            300,000                       50,000
Retained Earnings       200,000                       40,000

Total Credits          $600,000                      $170,000


Required
Prepare a consolidated balance sheet immediately following the acquisition.