Easton Corporation purchased 100% of the common stock of Hopkins Inc. on January 2, 2017.

Easton Corporation purchased 100% of the common stock of Hopkins Inc. on January 2, 2017. Hopkins’ balance sheet on January 2, 2017 was as follows:Accounts receivable-net$ 250,000Current liabilities$ 80,000Inventory340,000Long term debt170,000Land140,000Common stock ($1 par)50,000Building-net120,000Paid-in capital450,000Equipment-net90,000Retained earnings190,000Total Assets$940,000Total Liabilities & Equity$940,000Fair values agree with book values except for inventory, land, and equipment that have fair values of $390,000, $150,000 and $75,000, respectively. Hopkins has unrecorded patent rights valued at $30,000.Required:a. Prepare a schedule to assign values to Hopkins’ post-acquisition assets and liabilities assuming Easton paid $780,000 cash for the acquisition.b. Prepare the consolidation entries for a January 2, 2017 consolidated balance sheet.