On June 30, 2014, Pewter Ltd. gave 28,000 shares to Sterling Co. in exchange for 70% of Sterling's outstanding shares. At the time of the exchange, Pewter's shares had a fair value of $22.50 per share. The post-acquisition statements of financial position and Sterling's fair values are shown below. Statement of Financial Position As of June 30, 2014 Sterling Co. Assets: Current assets: Cash Accounts receivable Inventory Non-current assets: Land Equipment Accumulated amortization Investment in Sterling Total assets Liabilities and shareholders' equity. Current liabilities: Accounts payable Loan payable Shareholders' equity: Common shares Retained earnings Total liabilities and shareholders' equity Pewter Ltd. $ 750,000 115007000 150 ooo 2 400 ooo 750,000 (900,000) 630 ooo 2 730 ooo 5 1.30 ooo s Book value 37,500 112,500 37 500 187 500 225,000 375,000 (112,500) 487 500 75,000 75 ooo 150,000 450 ooo 600 ooo Fair Value $ 37,500 112,500 37,500 300, ooo 412,500 75,000 750,000 300 ooo 1 050 ooo 1 500 ooo 4 080 ooo 5 130 ooo