On January 1, 2016, Rand Corp. issued shares of its common stock to acquire all of the outstanding common stock of Spaulding Inc. Spaulding's book value was only $140,000 at the time, but Rand issued 12,000 shares having a par value of $1 per share and a fair value of $20 per share. Rand was willing to convey these shares because it felt that buildings (ten-year life) were undervalued on Spaulding's records by $60,000 while equipment (five-year life) was undervalued by $25,000. Any consideration transferred over fair value of identified net assets acquired is assigned to goodwill. Following are the individual financial records for these two companies for the year ended December 31, 2019. Rand Corp. Spaulding Inc. Revenues $372,000 $108,000Expenses (264,000) (72,000)Equity in subsidiary 25,000 0earnings Net income $133,000 $36,000 Retained earnings $765,000 102,000January 1, 2016Net income (above) 133,000 36,000Dividends paid (84,000) (24,000)Retained earnings, $814,000 114,000December 31, 2016 Current assets $150,000 $22,000Investment in 242,000 0Spaulding Inc. Buildings (net) 525,000 85,000Equipment (net) 389,250 129,000Total assets $1,306,250 $236,000 Liabilities $82,250 $50,000Common stock 360,000 72,000Additional paid-in capital 50,000 0Retained earnings, 814,000 114,000December 31, 2016 (above) Total liabilities and $1,306,250 $236,000stockholders? equityRequired:Prepare a consolidation worksheet for this business combination.