Reference no: EM132459462

Question 1: The following are preliminary financial statements for Green Co. and Gold Co. for the year ending December 31, 2018 prior to Green's acquisition of Gold.

Sales	Green Co.	Gold Co.
	$360,000	$228,000
Expenses	(240 000)	(117,000)
Net income	$120.0_0
	0	96,0_00
Retained earnings, January 1, 2018	$480,000	$252,000
Net income (from above)	120,000	96,000
Dividends declared	(3641001
Retained earnings, December 31, 2018	5564 00
	0
Current assets	$360,000	$120,000
Land	120,000	108,000
Building (net)	480 non	336 OM
Total assets	$960.00	$564.00
	2
Liabilities	$108,000	$132,000
Common stock	192,000	72,000
Additional paid-in capital	96,000	12,000
Retained earnings, December 31, 2018	564.000	348.000
Total liabilities and stockholders' equity	$262.20	564 00
	0	0

On December 31, 2018 (subsequent to the preceding statements), Green exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Gold. Green's stock on that date has a fair value of $60 per share. Green was willing to issue 10,000 shares of stock because Gold's land wa appraised at $204,000. Green also paid $14,000 to attorneys and accountants who assisted in creating this combination.

Required:

Question 1: Assuming that these two companies retained their separate legal identities, prepare the consolidation