Company S acquired 60% of Company R on December 31, 2019 for $ 300 per common share.

On the date of acquisition, the fair market value of R's net identifiable assets were equal to their book values except for inventories (fair value $1,800,000). capital assets (net) (fair value $ 3,203,000) and liabilities (fair value $ 2,500,000).

Required:

Using the fair value enterprise method of consolidation under IFRS:

1. post consolidation and elimination journal entries at December 31, 2019 and post these journal entries to the consolidation worksheet supplied.

2. post consolidated balance sheet in worksheet format as at December 31, 2019 using the

consolidation worksheet provided.

Cash Accounts receivable, net Inventories Prepaid expenses Capital assets,net Investment in R Total assets Liabilities Common shares Retained earnings Total liabilities and shareholders' equity Company Company S R 5,200,000 50,000 2,400,000 300,000 11,200,000 1,500,000 422,000 47,000 18,978,000 2,003,000 1,800,000 40,000,000 4,000,000 9,487,000 2,200,000 10,000,000 1,000,000 20,513,000 800,000 40,000,000 4,000,000