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Calculate a schedule of changes to acquisition differential, since acquisition to current year to support the consolidation. Prepare the consolidated financial statements of Paris and
Additional Data 100.0% of the common shares of Slade Paper Ltd. (Slade) In January 2019, Paris Inc Company (Paris) purchased by issuing common shares worth $800,000. At that date, Slade's common shares and retained earnings totalled $250,000 and $340,000 respectively. The net book values and fair values of the net identifiable assets of Slade were the same except for the following: 1. The fair market value of inventory was greater than book value by $50,000. 2. The FMV of capital assets had replacement cost that exceeded NBV of $120,000. 3. Although the NBV of Slade's bonds payable was $400,000, the FMV was $460,000 due to a decline in the interest rates since the bonds were originally issued. On July 1, 2021, Paris advanced Slade $200,000, due July 1, 2002. Interest of 8% is due at maturity. During 2021, Paris paid dividends of $250,000 and Slade paid dividends of $50,000. Paris uses the Fair Value Enterprise method in their consolidation process.
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