Razorback Express, Inc., paid $266,000 to acquire all the common stock of Sooner Corporation, and Sooner owes Razorback $81,000 on a note payable. Immediately after the purchase on September 30, 20X8, the 2 companies' balance sheets follow.
|
Razorback
|
Sooner
|
|
Assets
|
|
Cash
|
$ 24,000
|
$ 20,000
|
|
Accounts receivable, net
|
91,000
|
42,000
|
|
Note receivable from Sooner
|
81,000
|
-
|
|
Inventory
|
19,000
|
214,000
|
|
Investment in Sooner
|
266,000
|
-
|
|
Plant assets, net
|
278,000
|
219,000
|
|
Total
|
$759,000
|
$495,000
|
|
Liabilities and Stockholders' Equity
|
|
Accounts payable
|
$ 57,000
|
$ 49,000
|
|
Notes payable
|
175,000
|
149,000
|
|
Other liabilities
|
129,000
|
31,000
|
|
Common stock
|
150,000
|
118,000
|
|
Retained earnings
|
248,000
|
148,000
|
|
Total
|
$759,000
|
$495,000
|
Required - Prepare the consolidated balance sheet of Razorback Express (It is sufficient to complete a consolidation work sheet.)