25.5 Accounting by an acquirer* LO6 Howard Ltd is seeking to expand its share of the widgets market and has negotiated to take over the operations of Falcon Ltd on 1 January 2021. The statements of financial position of the two companies as at 31 December 2020 were as follows. Howard Falcon Ltd Ltd Cash Accounts receivable nventories Freehold land Buildings (net) Plant and equipment (net) Goodwill S 23000 25 000 35 500 150000 60000 65000 25000 $383500 56000 50000 100000 100000 S 12000 34 700 27600 100000 30000 46 000 2000 Accounts payable Mortgage loan Debentures Share capital 100000 shares $252300 45 100 44000 52 500 - 60000 shares Other reserves Retained earnings 28500 49000 60000 26800 23 900 $383500 $252 300 25.5 Accounting by an acquirer* LO6 Howard Ltd is seeking to expand its share of the widgets market and has negotiated to take over the operations of Falcon Ltd on 1 January 2021. The statements of financial position of the two companies as at 31 December 2020 were as follows. Howard Falcon Ltd Ltd Cash Accounts receivable nventories Freehold land Buildings (net) Plant and equipment (net) Goodwill S 23000 25 000 35 500 150000 60000 65000 25000 $383500 56000 50000 100000 100000 S 12000 34 700 27600 100000 30000 46 000 2000 Accounts payable Mortgage loan Debentures Share capital 100000 shares $252300 45 100 44000 52 500 - 60000 shares Other reserves Retained earnings 28500 49000 60000 26800 23 900 $383500 $252 300