Craft Ltd$.$ held $80\%$ of the outstanding ordinary shares of Delta Corp. as at December $31,$ Year $12.$ In order to establish a closer relationship with Nonaffiliated Corporation, a major supplier to both Craft and Delta, all three companies agreed that Nonaffiliated would take an equity position in Delta. Accordingly, for a cash payment of $$15$ per share, Delta issued $12,250$ additional ordinary shares to Nonaffiliated on December $31,$ Year $12.$ This was the last transaction that occurred on this date. Statements of financial position for the two companies just prior to this transaction were as follows:

CRAFT LTD$.$

STATEMENT OF FINANCIAL POSITION

At December $31,$ Year $12$

Buildings and equipment $($net$)$

$ $600,000$

Investment in Delta

$490,000$

Inventory

$180,000$

Accounts receivable

$90,000$

Cash

$50,000$

$$1,410,000$

Ordinary shares

$ $480,000$

Retained earnings

$610,000$

Mortgage payable

$250,000$

Accounts payable

$70,000$

$$1,410,000$

DELTA CORP.

STATEMENT OF FINANCIAL POSITION

At December $31,$ Year $12$

Buildings and equipment $($net$)$

$$400,000$

Inventory

$200,000$

Accounts receivable

$120,000$

Cash

$65,000$

$$785,000$

Ordinary shares $($Note $1)$

$$250,000$

Retained earnings

$350,000$

Accrued liabilities

$85,000$

Accounts payable

$100,000$

$$785,000$

Page $495$

Note $1$: $49,000$ ordinary shares are outstanding on December $31,$ Year $12.$

Additional Information

Craft has used the equity method of accounting for its investment in Delta since it acquired its $80\%$ interest in Delta in Year $2.$ At that time, the acquisition differential was entirely allocated to inventory and patent, which still exists but is not recorded on Delta$$s separate$-$entity books.

There were no unrealized intercompany asset profits as at December $31,$ Year$12.$

Required

Prepare a consolidated statement of financial position as at December $31,$ Year $12($show calculations for all items on the balance sheet$).$

If Craft had used the identifiable net assets method rather than the fair value enterprise method, how would this affect the return on equity ratio for Year$12?$