Cogesco purchased 75% of the capital of Securenet for $250,000 on January 1, 2008. At this date the equity of Securenet was:

Share capital......... $100,000

Retained earnings...... 100,000

At this date, Securenet had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the following assets:

Required
(a) Prepare the acquisition analysis at the acquisition date. Assume that Cogesco uses the partial goodwill method.
(b) Prepare the consolidated financial statements as at December 31, 2013.

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Cogesco Securenet $250,000 425,500 110,000 162,000 225,000 65,000 50,000 1,287,500 400,000 180,000 510,600 72,900 124,000 $1,287,500 Investment in Securenet Plant Land Current assets Cost of sales Other expenses Income tax expense $190,000 50,000 84,000 35,000 7,000 5,000 371,000 100,000 155,000 80,000 12,000 24,000 $371,000 Share capital Retained earnings (1/1/13) Sales revenue Accounts payable Accumulated depreciation (plant)