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Prepare the consolidated balance sheet immediately after acquisition. ALPHA, INC. Consolidated Balance Sheet As of January 5, 20X1 Assets Current assets$2,250,000 Fixed assets, net7,000,000 Investment in Beta Total Assets$9,250,000 Liabilities Current Liabilities$375,000 Stockholders' Equity Common stock7,000,000 Capital in excess of par500,000 Retained earnings1,000,000 Total Stockholders' Equity8,500,000 Total Liabilities and Equity$8,875,000

1. Record the entry to eliminate Beta's stockholder equity accounts.
2 Record the entry to recognize the excess price paid above book value.
3 Record the entry to adjust net assets of Beta to their full fair value at time of acquisition.
Prepare the consolidated balance sheet immediately after acquisition.

ALPHA, INC.
Consolidated Balance Sheet
As of January 5, 20X1
Assets
Current assets $2,250,000
Fixed assets, net 7,000,000
Investment in Beta
Total Assets $9,250,000
Liabilities
Current Liabilities $375,000
Stockholders' Equity
Common stock 7,000,000
Capital in excess of par 500,000
Retained earnings 1,000,000
Total Stockholders' Equity 8,500,000
Total Liabilities and Equity $8,875,000

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