Delkart Products Company acquired 100 percent of the common shares of Angel Company on January \(1,20 \times 2\), by issuing 6,000 shares of its \(\$ 10\) par common stock. At the time of the business combination, Delkart's stock was selling for \(\$ 70\) per share. Balance sheets for the two companies as of December 31, 20X1, with fair values included, were as follows:

On December 31, 20X1, Angel owed Delkart \(\$ 25,000\) on a one-year note; although the interest was paid on December 31, the principal was still outstanding on January 1, 20X2.
\section*{Required}
Prepare a consolidated balance sheet for Delkart Products Company and its subsidiary as of January \(1,20 \times 2\) :

a. Assuming the combination is treated as a pooling of interests.

b. Assuming the combination is treated as a purchase.

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Cash and Receivables Inventory Equipment (net) Total Assets Current Payables Delkart Products Co. Book Value $ 80,000 240,000 480,000 $800.000 $ 50,000 Notes Payable 200,000 Common Stock 300.000 Retained Earnings 250.000 Total Liabilities and Equity $800,000 Angel Company Fair Value Book Value $ 80,000 260,000 560.000 $900,000 $ 50.000 220,000 $ 75.000 125,000 300,000 $500,000 $ 30,000 100,000 200,000 Fair Value $ 75.000 145.000 340,000 $560,000 $ 30,000 100,000 170.000 $500,000