ACCT 4455 Fall 2022 Question 2 (20 marks) Pots purchased 70% of Spatula's common shares for $210,000 on June 1, Year 4. Pots and Spatula Inc. had the following balance sheets on June 1, Year 4 prior to the purchase: (v Pots Spatula Fair Value Cash $300,000 $50,000 $50,000 Accounts Receivable 25,000 29,000 24,000 Inventory 80,000 60,000 67,000 Plant and Equipment (net) 310,000 270,000 240,000 Trademark 30,000 43.000 Total Assets $715,000 $439,000 Accounts Payable $120,000 $85,000 $85,000 Bonds Payable 420,000 207,000 205,000 Common Shares 110,000 87,000 Retained Earnings 65,000 60,000 Total Liabilities and Equity $715,000 $439,000 Required a) Prepare the journal entry to record the purchase of Spatula's common shares on June 1, Year 4. b) Prepare calculation and allocation of acquisition differential schedule and the consolidated balance sheet at June 1, Year 4 (in good format and write out all words completely, including titles and account names. Include all #s in brackets on the consolidated BS: CV + CV +/- FVIS) c) Calculate goodwill and non-controlling interest balances that would appear on the consolidated balance sheet on June 1, Year 4 under the Identifiable Net Assets (INA) method. Hints: Goodwill = $166,000; Consolidated BS total assets = $1,095,000 Page 2 of 2