Pamula Corporation Paid $279,000 for 90% of Shad Corporation's $10

Essay

Pamula Corporation paid $279,000 for 90% of Shad Corporation's $10 par common stock on December 31,2014,when Shad Corporation's stockholders' equity was made up of $200,000 of Common Stock,$60,000 Additional Paid-in Capital and $40,000 of Retained Earnings.Shad's identifiable assets and liabilities reflected their fair values on December 31,2014,except for Shad's inventory which was undervalued by $5,000 and their land which was undervalued by $2,000.Balance sheets for Pamula and Shad immediately after the business combination are presented in the partially completed working papers.
Required:
Complete the consolidated balance sheet working papers for Pamula Corporation and Subsidiary.