On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $8,480 cash.

The statements of financial position of the two companies immediately after the acquisition transaction appear below.

	P Company			S Company
	Carrying Amount			Carrying Amount			Fair Value
Plant and equipment (net)	$	10,000		$	9,000		$	7,600
Investment in S Company		8,480
Inventory		7,060			5,700			6,200
Accounts receivable		6,950			3,700			3,700
Cash		5,300			2,950			2,950
	$	37,790		$	21,350
Ordinary shares	$	12,400		$	4,900
Retained earnings		17,290			6,250
Long-term liabilities		4,400			3,900			3,900
Other current liabilities		1,900			3,700			3,700
Accounts payable		1,800			2,600			2,600
	$	37,790		$	21,350

Required:

(a) Calculate consolidated goodwill at the date of acquisition under the proportionate consolidation method.

Consolidated goodwill $

(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

(ii) Fair value enterprise method

(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		FVE
Current ratio
Debt to equity ratio