Calian Ltd. purchases all the assets and liabilities of Parex Ltd. by issuing 40,000 common shares at $30 per share to Parex Ltd. on December 31, 20X9. Before the transaction, the separate statements of financial position of both companies are presented below:

Only the following items of Parex Ltd. have fair values different from their carrying values:

Inventory fair value is $70,000Investment in securitiesfair value is $140,000

Building and equipmentfair value is $450,000

Long-term bonds payablefair value is ($60,000)

Required:

a) Prepare the post-transaction statement of financial position for Calian Ltd. (11 marks)

b) Prepare the post-transaction statement of financial position for Parex Ltd. (6 marks)