On January 1, 2014, Sicamous Company had 200,000 outstanding common shares and 100,000 outstanding preferred shares. The preferred shares had a stated value of $20 each and paid cumulative dividends of $1 per year. They were redeemable at the option of the issuer at a premium of 10% over their stated value. Dividends on the preferred shares had been paid up to the end of 2013. On January 1, 2014, Princeton Limited acquired 75% of the outstanding common shares of Sicamous Company and 60% of the companys preferred shares, paying $4.5 million for the common shares and $1,350,000 for the preferred shares. On that date the shareholders equity of Sicamous was as follows:

PrincetonSicamous

Common shares$10,000,000$3,000,000

Preferred shares 5,000,000 2,000,000

Contributed surplus 1,000,000 500,000

Retained earnings 4,000,000 2,500,000

$20,000,000$8,000,000

Princeton accounted for its investments using the cost method and valued the noncontrolling interest in the common shares of Sicamous based on the price that it paid for its controlling interest. Any acquisition differential arising on the share purchase was allocated to goodwill which was to be tested annually for impairment. Impairment in 2014 amounted to $20,000.

During 2014, Princeton Limited had net income of $600,000 and paid dividends of $300,000 and Sicamous had net income of $250,000 and paid dividends of $200,000. Neither company had any other equity transactions in 2014.

Required:

Prepare the shareholders equity section of Princeton Limiteds consolidated balance sheet at December 31, 2014.

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