Elder Co. acquired for cash all of the outstanding stock of BaBe Co. on December 31 for...

Elder Co. acquired for cash all of the outstanding stock of BaBe Co. on December 31 for $870,000. The balance sheets of the two companies just prior to the acquisition were as follows:

An independent appraiser valued the assets of BaBe Co. as follows:

Required:

Prepare a consolidated balance sheet as of the acquisition date. Assume that no intercompany transactions have occurred in the past and that Elder will assume BaBe’s liabilities.