On December 31, Year 1, P Company purchased 90% of the outstanding shares of S Company for $8,100 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)	$	8,800		$	7,200		$	6,200
Investment in S Company		8,100
Inventory		5,860			4,600			4,800
Accounts receivable		4,550			2,500			2,500
Cash		2,900			1,750			1,750
	$	30,210		$	16,050
Ordinary shares	$	11,200		$	3,700
Retained earnings		12,310			5,750
Long-term liabilities		3,500			2,700			2,700
Other current liabilities		1,900			2,500			2,500
Accounts payable		1,300			1,400			1,400
	$	30,210		$	16,050

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

P Company
Consolidated Statement of financial position
December 31, Year 1
Assets
		$0
Liabilities
Total liabilities		$0
Shareholders' equity
		0
		$0

(ii) Fair value enterprise method

P Company
Consolidated Statement of financial position
December 31, Year 1
Assets
		$0
Liabilities
Total liabilities		$0
Shareholders' equity
		0
		$0

(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.)

ces.)

	INA		FVE
Current ratio
Debt to equity ratio