On January 1, 2019, Pop Co. acquired 75% of the outstanding common shares of Soda Inc. for $161,250 cash. On that date, Soda had common shares of $156,250 and retained earnings of $31,250. At acquisition, the identifiable assets and liabilities of Soda had fair values that were equal to carrying amounts except for inventory, which had fair value $8,000 greater than carrying amount and plant and equipment, which had fair values $10,000 greater than carrying amounts. The plant and equipment had a remaining useful life of 5 years on January 1, 2019 Any goodwill will be tested yearly for impairment. Balance sheets as at December 31, 2019 are presented below. Cash Accounts receivable Inventory Land Plant & Equipment, net Investment in Soda Inc. Current liabilities Bonds payable Common shares Retained earnings. - equity Pop Co. $ 10,000 Soda Inc. $ 5,000. 38,750 42,250 75,250 62,500 50,000 100,000 150,000 175,000 168,500 $492,500 $384,750 $ 45,500 - 338,000 109,000 $492,500 $ 47,125 128,125 156,250 53,250 $384,750