Help On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $7,600 cash. The statements of financial position of the two companies immediately after the acquisition transaction appear below. S Company Carrying Fair Amount Value $ 7,600 $ 6,100 :33 Plant and equipment (net) Investment in s Company Inventory Accounts receivable Cash p Company Carrying Amount $ 9,300 7,600 6,360 5,550 3,900 $ 32,710 $ 11,700 14,510 4,200 1,200 1,100 $ 32,710 1,800 3,000 2,250 $ $ ces Ordinary shares Retained earnings Long-term liabilities Other current liabilities Accounts payable 5,100 3,000 2,250 17,950 4,200 5,650 3,200 3,000 1,900 17,950 3,200 3,000 1,900 $ Required: (a) Calculate consolidated goodwill at the date of acquisition under the proportionate consolidation method. Consolidated goodwill 360 (b) Prepare a consolidated statement of financial position in order of liquidity i.e starting with cash at the date of acquisition under each of the following: (i) Identifiable net assets method P Company Consolidated Statement of financial position December 31, Year 1 Assets $ Plant and equipment Goodwill 17,150 9,050 (ii) Fair value enterprise method P Company Consolidated Statement of financial position December 31, Year 1 1 Assets Goodwill 0 $ 450 0 Plant and equipment Trademarks 15,400 0 12,160 Accounts receivable 0 8,550 Cash 0 6,150 $ 42,710 Liabilities Other current liabilities $ 4,200 0 1:-1:11: 7 Ann (c) Calculate the current ratio and debt-to-equity ratio for P Company under the identifiable net assets (INA) method and the fair value enterprise (FVE) method. (Round "Current ratio" answers to 2 decimal places and "Debt to equity ratio" answers to 4 decimal places.) INA 3.73 0.2089 FVE 0.2084 Current ratio Debt to equity ratio