he July 31, Year 3, balance sheets of two companies that are parties to a business combination are as follows:

	Ravinder Corp.			Robin Inc.
	Carrying Amount			Carrying Amount			Fair Value
Current assets	$	1,601,600		$	420,800		$	471,200
Plant and equipment		1,331,600			1,341,600			975,200
Accumulated depreciation		(250,800)			(501,600)
Patentsnet								73,600
	$	2,682,400		$	1,260,800
Current liabilities	$	1,361,600		$	253,600			253,600
Long-term debt		481,600			360,800			385,600
Common shares		721,600			169,600
Retained earnings		117,600			476,800
	$	2,682,400		$	1,260,800

In addition to the assets identified above, Ravinder Corp. attributed a value of $101,600 to a major research project that Robin Inc. was working on. Robin Inc. feels that it is within a year of developing a prototype for a state-of-the-art bio-medical device. If this device can ever be patented, it could be worth hundreds of thousands of dollars.

Effective on August 1, Year 3, the shareholders of Robin Inc. accepted an offer from Ravinder Corp. to purchase 80% of their common shares for $1,104,000 in cash. Ravinder Corp.s legal fees for investigating and drawing up the share purchase agreement amounted to $25,800.

Required:

(a) Prepare the journal entries in the records of Ravinder Corp. to record the share acquisition and cost of legal fees.

-Record the payment for share acquisition.

-Record the cost of legal fees.

(b) Prepare a schedule to calculate and allocate the acquisition differential.

(c) Prepare Ravinder Corp.s consolidated balance sheet as at August 1, Year 3. Assume there were no transactions on this date other than the transactions described above.