The balance sheets of A Ltd. and B Ltd. on December 30, Year 6, are as follows:

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The balance sheets of A Ltd. and B Ltd. on December 30, Year 6, are as follows: 


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On December 31, Year 6, A issued 150 common shares for all 60 outstanding common shares of B. The fair value of each of B’s common shares was $40 on this date. 



Required 


(a) Determine which shareholder group controls the consolidated entity and explain why this share issue most likely occurred. 


(b) Prepare the consolidated balance sheet of A Ltd. on December 31, Year 6.

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Modern Advanced Accounting In Canada

ISBN: 9781260881295

10th Edition

Authors: Hilton Murray, Herauf Darrell

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