LO2 The balance sheets of Percy Corp. and Saltz Ltd. on December 31, Year 10, are shown below: Saltz Cash Accounts receivable Inventory Plant Accumulated amortization Percy $ 200,000 50,000 60,000 475,000 (125,000) $ 4.000 14.000 42,000 192,000 (90,000) Trademarks-net 14,000 $660,000 $176,000 Current liabilities Long-term debt Common shares Retained earnings $ 100,000 160,000 220,000 180,000 $660,000 $ 20,000 40,000 60,000 56,000 $176,000 214 CHAPTER 4 Consolidation of Non-Wholly Owned Subsidiaries The fair values of the identifiable net assets of Saltz Ltd. on December 31, Year 10, were as follows: Cash Accounts receivable Inventory Plant Trademarks $ 4,000 14,000 52,000 120,000 28,000 218,000 Current liabilities Long-term debt Net assets $20,000 38,000 58,000 $160.000 In addition to the assets identified above, Saltz owned a taxi licence in the City of Moose Jaw. This licence expires in nine years. These licences are selling in the open market at approximately $40,000. On January 1, Year 11, Percy Corp paid $175,000 in cash to acquire 7,000 (70%) of the common shares of Saltz Ltd. Saltz's shares were trading for $20 per share just after the acquisition by Percy. Required Prepare the consolidated balance sheet on January 1, Year 11