2: (22 marks) The balance sheets of Palm Corp and Storm Ltd. On December 31, Year 5 were as follows: Palm Corp. Storm Ltd. Cash $13,000 $6,500 Accounts Receivable $181,300 $45,500 Inventory $117,000 $208,000 Land 91,000 52,000 Plant and Equipment (net) $468,000 $377,000 Investment in Storm Ltd. 336,000 Goodwill 117,000 $339,000 Total Assets $1,323,300 $728,000 Current Liabilities $156,000 $104,000 Contingent consideration 48,000 Long-term debt $416,000 $286,000 Common Shares $520,000 $390,000 Retained Earnings (deficit) $183,300 $(52,000) Total Liabilities and Equity $1,323,300 $728,000 On December 31, Year 5, Palm purchased 80% of the common shares of Storm for $288,000 plus a commitment to pay an additional $100,000 in two years if the sales grow by more than 30% over the next two years. An independent business valuator stated that the contingent consideration based on sales growth could have settled by Palm by paying an extra $48,000 at the date of acquisition. On this date, the inventory of Storm had a fair value of $216,000, its land had a fair value of $87,000, and its plant and equipment had a fair value of $394,000. Required Prepare a consolidated balance sheet as at December 31, Year 5. Hints: Goodwill = $61,000 Consolidated balance sheet total assets = $1,797,300