Max Corporation has a wholly owned subsidiary, Min Ltd., which was formed several years ago. Both Max and Min are in the same business, but in different geographic areas. Min€™s initial capital was provided by Max, which purchased all of Min€™s shares for $600,000. At December 31, 20X6, the SFP accounts of Max and Min appeared as follows:

During 20X6, Min paid dividends of $100,000 to Max and purchased goods from Max at a total price of $1,200,000. All of the purchases from Max were subsequently sold to third parties during the year.

Required
Prepare a consolidated SFP for Max Corporation at December 31, 20X6. Additionally, show the consolidation-related adjusting entries required for preparing the consolidated SFP.

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Statements of Financial Position of Max and Min as at December 31, 20X6 Max Min $ 90,000 $ 30,000 Cash Accounts receivable 150,000 220,000 Receivable from Min 100,000 Property, plant, and equipment Accumulated depreciation 2,400,000 1,500,000 (670,000) (360,000) Investment in Min 600,000 $2,740,000 $ 340,000 $1,320,000 TOTAL ASSETS $ 200,000 Accounts payable Payable to Max 100,000 Bonds payable 1,000,000 Deferred tax liability 100,000 50,000 Common shares 600,000 400,000 Retained earnings 900,000 370,000 $2,740,000 $1,320,000 TOTAL LIABILITIES AND EQUITY