advance Financial Reporting

Q. No. 4: Jean and John Inc had the following balance sheets on August 31, 2019: Jean Inc. John Inc. John Inc. (carrying value) (carrying value) (fair value) Cash $1,200,000 $300,000 $300,000 Accounts Receivable S 400,000 5 64,000 3 64,000 Inventory 3: 240,000 $ 80,000 $ 60,000 Plant and Equipment (net) $ 860,000 $256,000 $300,000 Trademark $ 20,000 5 36,000 Total Assets $2,700,000 $720,000 Accounts Payable $1,500,000 $300,000 $300,000 Bonds Payable S 600,000 $240,000 $210,000 Common Shares 3 500,000 $ 60,000 Retained Earnings S 100,000 $120,000 Total Liabilities and Equity $2,700,000 $720,000 On August 31, 2019, Jean's date of acquisition, Jean Inc. purchased 90% of John Inc. for cash consideration of $400,000. Assuming the above balance sheets were prepared immediately before the acquisition, prepare Jean Inc's consolidated balance sheet on the date of acquisition using the Fair Value Enterprise Method