The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 2009.Black Co. Blue Co.Sales $360,000 $228,000Expenses (240,000) (240,000)Net income $120,000 $96,000Retained earning, jan. $480,000 $252,000 Net income (from above) 120,000 96,000Dividends paid (36,000) 0Retained earnings, Dec 31,2009 $564,000 $348,000Current assets $360,000 $120,000Land 120,000 108,000Building (net) 480,000 336,000Total assets $960,000 564,000Liabilities $108,000 132,000Common stock 192,000 72,000additional paid in capital 96,000 12,000Retained earninds, Dec 31,09 564,000 348,000Total liabilities and stockholders’ equity $960,000 564,000On December 31, 2009 (subsequent to the preceding statements), Black exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Blue. Black’s stock on that date has a fair value of $60 per share. Black was willing to issue 10,000 shares of stock because Blue’s land was appraised at $204,000. Black also paid $14,000 to several attorneys and accountants who assisted in creating this combination. Required:Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2009.assuming the transactions is treated as an acquistion combination.

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