The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: E Ltd. $ 96,650 58,300 230,600 24,650 410,200 $ 109,550 $ 30,100 45,200 46,600 (12,350) $ 410,200 $ 109,550 Cash and receivables Inventory Plant assets (net) Intangible assets Current liabilities Long-term debt Common shares Retained earnings (deficit) Costs of arranging the acquisition Costs of issuing shares $ $ 64,300 98,800 155,600 91,500 On December 31, Year 6, E Ltd. Issued 497 shares, with a fair value of $40 each, for 70% of the outstanding shares of J Ltd. Costs involved in the acquisition, paid in cash, were as follows: Falm S 3 Ltd. $ 20,800 9,650 71,800 7,300 $ 2,630 1,860 4,490 The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following:
The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: E Ltd. $ 96,650 58,300 230,600 24,650 410,200 $ 109,550 $ 30,100 45,200 46,600 (12,350) $ 410,200 $ 109,550 Cash and receivables Inventory Plant assets (net) Intangible assets Current liabilities Long-term debt Common shares Retained earnings (deficit) Costs of arranging the acquisition Costs of issuing shares $ $ 64,300 98,800 155,600 91,500 On December 31, Year 6, E Ltd. Issued 497 shares, with a fair value of $40 each, for 70% of the outstanding shares of J Ltd. Costs involved in the acquisition, paid in cash, were as follows: Falm S 3 Ltd. $ 20,800 9,650 71,800 7,300 $ 2,630 1,860 4,490 The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hh1.
Account

Transcribed Image Text:The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following:
Plant assets
Long-term debt
Fair value
$ 65,650
42,600
E Ltd. was identified as the acquirer in the combination.
Required:
(a) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the identifiable net assets method.
Assets
E Ltd.
Consolidated Balance Sheet
December 31, Year 6

Transcribed Image Text:The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows:
3 Ltd.
$ 20,800
E Ltd.
$ 96,650
58,300
230,600
24,650
9,650
Cash and receivables
Inventory
Plant assets (net)
Intangible assets
Current liabilities.
Long-term debt
Common shares
Retained earnings (deficit)
Costs of arranging the acquisition
Costs of issuing shares.
$
$
410,200
64,300
98,800
155,600
91,500
Fainal..
On December 31, Year 6, E Ltd. issued 497 shares, with a fair value of $40 each, for 70% of the outstanding shares of J Ltd. Costs
involved in the acquisition, paid in cash, were as follows:
71,800
7,300
$ 109,550
$ 30,100
45,200
46,600
(12,350)
$ 410,200 $ 109,550
S
2,630
1,860
$ 4,490
The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following:
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