On January $1,2021,$ B Ltd$.$ acquired $60\%$ of the shares of M Inc. by issuing shares valued at $$3,000,000.$ On this date, M Inc.$$s building and machinery had remaining useful lives of $20$ years and $5$ years, respectively. Both B Ltd$.$ and M Inc. use straight$-$line depreciation.

The separate$-$entity statements of financial position for B Ltd$.$ and M Inc. just prior to the acquisition are presented below.

B Ltd$.$s Statemt of Financial Position as of January $1,2021$:

Non$-$Current Assets:

Land $=$ $$0$

Building $=$ $$2,750,000$

Building$$s Accum. Dep. $=-$$$425,000$

Machinery $=$ $$2,750,000$

Machinery$$s Accum. Dep. $=-$$$1,400,000$

Total Non$-$Current Assets $=3,675,000$

Current Assets:

Inventories $=$ $$450,000$

AR $=$ $$675,000$

Cash $=$ $$255,000$

Total Current Assets $=$ $$1,380,000$

Total Assets $=$ $$5,055,000$

Non$-$Current Liab.:

Long$-$Term Loans $=$ $$0$

Current Liab.:

AP $=$ $$975,000$

Total Liab. $=$ $$975,000$

S$/$H$$s Equity:

Common Shares $=$ $$1,875,000$

RE $=$ $$2,205,000$

Total S$/$H$$s Equity $=$ $$4,080,000$

Total Liab. and S$/$H$$s Equity $=5,055,000$

M Inc.$$s Statemt of Financial Position as of January $1,2021$:

Non$-$Current Assets:

Land $($Carrying Value$)=$ $$725,000$

Land $($Fair Value$)=$ $$700,000$

Building $($Carrying Value$)=$ $$1,300,000$

Building $($Fair Value$)=$ $$1,500,000$

Building$$s Accum. Dep. $=-$$$650,000$

Machinery $($Carrying Value$)=$ $$1,300,333$

Machinery $($Fair Value$)=$ $$275,000$

Machinery$$s Accum. Dep. $=-$$$850,000$

Total Non$-$Current Assets $=1,825,000$

Current Assets:

Inventories $($Carrying Value$)=$ $$375,000$

Inventories $($Fair Value$)=$ $$162,500$

AR $($Carrying Value$)=180,000$

AR $($Fair Value$)=$ $$180,000$

Cash $($Carrying Value$)=$ $$45,000$

Cash $($Fair Value$)=$ $$45,000$

Total Current Assets $=$ $$600,000$

Total Assets $=$ $$2,425,000$

Non$-$Current Liab.:

Long$-$Term Loans $($Carrying Value$)=$ $$275,000$

Long$-$Term Loans $($Fair Value$)=$ $$275,000$

Current Liab.:

AP $($Carrying Value$)=$ $$325,000$

AP $($Fair Value$)=$ $$325,000$

Total Liab. $=$ $$600,000$

S$/$H$$s Equity:

Common Shares $=$ $$700,000$

RE $=$ $$1,125,000$

Total S$/$H$$s Equity $=$ $$1,825,000$

Total Liab. and S$/$H$$s Equity $=$ $$2,425,000$

B Ltd$.$s Statemt of Financial Position as of Dec. $31,2022$:

Non$-$Current Assets:

Long$-$Term Loan Receivable $=$ $$0$

Land $=$ $$325,000$

Building $=$ $$3,800,000$

Building$$s Accum. Dep. $=-$$$665,000$

Machinery $=$ $$2,500,000$

Machinery$$s Accum. Dep. $=-$$$1,015,000$

Investment in M Inc. $=$ $$3,000,000$

Total Non$-$Current Assets $=$ $$7,945,000$

Current Assets:

Inventories $=$ $$1,350,000$

AR $=$ $$626,000$

Cash $=$ $$295,000$

Total Current Assets $=$ $$2,271,000$

Total Current Assets $=$ $$10,216,000$

Non$-$Current Liab.:

Long$-$Term Loans $=$ $$520,000$

Current Liab.:

AP $=$ $$945,250$

Total Liab. $=$ $$1,465,250$

S$/$H$$s Equity:

Common Shares $=$ $$4,875,000$

RE $=$ $$3,875,750$

Total S$/$H$$s Equity $=$ $$8,750,750$

Total Liab. and S$/$H$$s Equity $=$ $$10,216,000$

M Inc.$$s Statemt of Financial Position as of Dec. $31,2022$:

Non$-$Current Assets:

Long$-$Term Loan Receivable $=$ $$0$

Land $=$ $$655,000$

Building $=$ $$1,900,000$

Building$$s Accum. Dep. $=-$$$825,000$

Machinery $=$ $$2,450,000$

Machinery$$s Accum. Dep. $=-$$$1,020,000$

Investment in M Inc. $=$ $$0$

Total Non$-$Current Assets $=$ $$3,160,000$

Current Assets:

Inventories $=$ $$584,250$

AR $=$ $$184,000$

Cash $=$ $$143,000$

Total Current Assets $=$ $$911,250$

Total Assets $=$ $$4,071,000$

Non$-$Current Liab.:

Long$-$Term Loans $=$ $$1,200,000$

Current Liab.:

AP $=$ $$960,000$

Total Liab. $=$ $$2,160,000$

S$/$H$$s Equity:

Common Shares $=$ $$1,000,000$

RE $=$ $$911,250$

Total S$/$H$$s Equity $=$ $$1,911,250$

Total Liab. and S$/$H$$s Equity $=$ $$4,071,250$

B Ltd$.$s Statemt of Income as of Dec. $31,2022$:

Sales $=$ $$26,750,000$

Div Inc $=$ $$360,000$

Gain on Sale of Machine $=$ $$0$

Other Income $=$ $$12,000$

Cost of Sales $=$ $$16,050,000$

Other Operating Expenses $=$ $$9,530,500$

Interest Expense $=$ $$200,000$

Loss on Sale of Machine $=$ $$100,000$

Net Income $=$ $$1,349,500$

M Inc.$$s Statemt of Income as of Dec. $31,2022$:

Sales $=$ $$11,000,000$

Div Inc $=$ $$0$

Gain on Sale of Machine $=$ $$0$

Other Income $=$ $$0$

Cost of Sales $=$ $$6,050,000$

Other Operating Expenses $=$ $$4,950,000$

Interest Expense $=$ $$180,000$

Loss on Sale of Machine $=$ $$0$

Net Income $=-$$$180,000$

Butter Inc.$$s Statemt of RE for the year ended Dec. $31,2022$:

RE$,$ Dec. $31,2021=$ $$3,266,250$

Net Income $=$ $$1,349,500$

Divs Declared $=-$$$740,000$

RE$,$ Dec.