$13$ marks

Two companies, Race Inc. and Investment Co$.,$ set up a special purpose entity to develop

a new race track.

Investment Co$.$ purchased $100$ percent of the initial common shares offering for $$10$

million, and Race Inc. agreed to supply $100$ percent of the management which would

include directing the day$-$to$-$day activities of the race track. A bank loan was obtained for

$$20$ million with Race Inc. providing a guarantee for the bank loan. Additionally, Race

Inc. guaranteed a $12$ percent return to Investment Co$.$ on its investment for the first $10$

years with Race Inc. to receive all profits in excess of the $12$ percent return to Investment

Co$..$ Immediately after the completion of the race track construction which cost in total

$$28$ million, Race Inc. in its own separate entity financial statements reported the

following amounts $($in millions$)$;

Required:

Prepare a consolidated balance sheet for Race Inc. immediately following the race

track construction. $($Enter your answers in millions of dollars. Negative amounts

should be indicated by a minus sign or bracket$).$