A Company is considering purchasing the business of B Company.
The first option being considered is to buy 100% of the outstanding shares of B Company from the shareholders
of B Company by issuing 30,000 common shares of A which have a current market price of $ 27 per share.
A Company's share capital includes 35,000 common shares outstanding prior to this transaction.
The current trial balances, immediately before this transaction, of the two companies are as follows:
				A Company		B Company
Current assets		$	298,000	$	208,000
Property, plant and equipment		618,000		468,000
Other assets			518,000		288,000
			$	1,434,000	$	964,000
Liabilities		$	418,000	$	328,000
Common shares			218,000		68,000
Retained earnings			798,000		568,000
			$	1,434,000	$	964,000
Fair values of assets and liabilities that differ from the above are as follows:
Property, plant and equipment	$	650,000	$	518,000
Other assets		$	600,000	$	336,000
Liabilities		$	438,000	$	348,000
Required;
(a)	Assuming this purchase is completed at the date of the trial balances above,
	prepare, immediately after the purchase is completed:
	(i) the separate balance sheet of A Company
	(ii) the separate balance sheet of B Company
	(iii) the resulting consolidated balance sheet

(b) Assume that prior to this transaction, A Company's number of common

shares outstanding was 25,000 (not 35,000), prepare the resulting

consolidated balance sheet (all other numbers above are the same)

(c) Assume that instead of purchasing shares, A Company purchased the

net assets of B Company for total cash paid to B Company of $ 810,000,

prepare, immediately after the purchase is completed:

(i) the separate balance sheet of A Company

(ii) the separate balance sheet of B Company

(iii) the resulting consolidated balance sheet