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 $14.40 per share, Delta issued 21,000 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) $ 714,000 Investment in Delta 466,480 Inventory 189,500 Accounts receivable 114,500 Cash 85,000 $ 1,569,480 Ordinary shares $ 480,000 Retained earnings 730,000 Mortgage payable 276,000 Accounts payable 83,480 $ 1,569,480 DELTA CORP STATEMENT OF FINANCIAL POSITION at December 31, Year 12 Buildings and equipment (net) Inventory Accounts receivable Cash $ 480,000 ,000 187,600 84,000 $1,048,600 $ 250,000 311, 225 105,200 382,175 $1,048,600 Ordinary shares (Note 1) Retained earnings Accrued liabilities Accounts payable 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. 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: (a) Prepare a consolidated statement of financial position as at December 31, Year 12. Craft Ltd. Consolidated Statement of Financial Position as at December 31, Year 12 Assets $ 0 Liabilities and Equity