G Company is considering the takeover of K Company whereby it will issue 7,000 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 18,000 shares outstanding, which were trading at $8.50 per share. The following information has been assembled:

		G Company						K Company
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Current assets	$	56,000		$	52,500		$	20,000		$	14,200
Plant assets (net)		70,000			80,000			30,000			46,000
	$	126,000					$	50,000
Current liabilities	$	21,000			21,000		$	6,000			6,000
Long-term debt		20,000			24,000			3,500			5,300
Common shares		51,000						20,000
Retained earnings		34,000						20,500
	$	126,000					$	50,000

Required:

(a) Prepare G Companys consolidated balance sheet immediately after the combination using the direct approach and accounting for the combination with

the acquisition method

(b) Prepare G Companys consolidated balance sheet immediately after the combination using the worksheet approach and the acquisition method. (Leave no cells blank - be certain to enter "0" wherever required. Values in the first two columns and last column (the "parent", "subsidiary" and "consolidated" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Entry" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Omit $ sign in your response.)

Consolidated Financial Statement Working Paper
G Company
Consolidated Balance Sheet
				Entries
	G Company	K Company		Dr.		Cr.	Consolidated
Current assets	$	$		$		$	$
Plant assets (net)
Goodwill
Investment in K Company
Acquisition differential
	$	$					$
Current liabilities	$	$					$
Long-term debt
Common shares
Retained earnings
	$	$					$
			Total	$		$