G Company is considering the takeover of K Company whereby it will issue 7,500 common shares for all of the outstanding shares of K Company. K Company will become a wholly owned subsidiary of G Company. Prior to the acquisition, G Company had 13,000 shares outstanding, which were trading at $8.00 per share. The following information has been assembled: G Company Carrying Amount Fair Value Current assets $ 47,000 $ 54,500 $ K Company Carrying Amount Fair Value 24,000 $ 16,200 Plant assets (net) 74,000 84,000 34,000 39,000 $ 121,000 $ 58,000 Current liabilities $ 21,400 $ 21,400 $ 6,400 $ 6,400 Long-term debt 22,000 26,000 3,900 4,600 Common shares 44,000 24,000 Retained earnings 33,600 23,700 $ 121,000 $ 58,000 Required: Prepare G Company's consolidated balance sheet immediately after its acquisition of K Company. i) Prepare the journal entry in the records of Red to record the share acquisition and related fees. ii) Prepare the consolidated balance sheet of Red as at August 1, Year 3. c) Assume the same facts as b) except that Red is a private company, uses ASPE, and chooses to use the cost method to account for its investment in Sax. i) Prepare the journal entry in the records of Red to record the share acquisition and related fees. ii) Prepare the balance sheet of Red as at August 1, Year 3.