On January 1, Year 2, Par Corporation of Canada paid FCU 7.0 million for 64% of the outstanding common shares of Sub Company of Sweden. On this date the fair values of Sub's identifiable assets and liabilities were equal to their carrying values. Sub's comparative balance sheets and Year 2 income statement are as follows: Sub Balance Sheet December 31 Cash, Accounts Receivable Inventory Plant and equipment (net) Year 2 FCU 7,590,000 1,830,000 4,790,000 FCU 14,210,000 Year 1 FCU 4,400,000 2,200,000 5.290,000 FCU 11.890,000 Accounts payable Note payable Common shares Retained earnings FCU 1,500,000 3,900,000 4,000,000 4.810.000 FCU 14.210.000 FCU 1,590,000 3,000,000 4,000,000 3.300.000 FCU 11.890,000 Sales Cost of Goods sold Depreciation expense Other expense Interest expense Net income Sub Income Statement For the year ended December 31, Year 2 FCU 9,600,000 5,700,000 500,000 1,300,000 400,000 FCU 1,700,000 Following is the Balance Sheet of Par at December 31, Year 2: Cash, Accounts Receivable Inventory Goodwill Plant and equipment (net) PAR $ 1,000,000 850,000 50,000 2,000,000 $ 3,900,000 Accounts payable Note payable Common shares Retained earnings $ 200,000 900,000 1,500,000 1,300,000 $ 3,900,000 On January 1, Year 2, Par Corporation of Canada paid FCU 7.0 million for 64% of the outstanding common shares of Sub Company of Sweden. On this date the fair values of Sub's identifiable assets and liabilities were equal to their carrying values. Sub's comparative balance sheets and Year 2 income statement are as follows: Sub Balance Sheet December 31 Cash, Accounts Receivable Inventory Plant and equipment (net) Year 2 FCU 7,590,000 1,830,000 4,790,000 FCU 14,210,000 Year 1 FCU 4,400,000 2,200,000 5.290,000 FCU 11.890,000 Accounts payable Note payable Common shares Retained earnings FCU 1,500,000 3,900,000 4,000,000 4.810.000 FCU 14.210.000 FCU 1,590,000 3,000,000 4,000,000 3.300.000 FCU 11.890,000 Sales Cost of Goods sold Depreciation expense Other expense Interest expense Net income Sub Income Statement For the year ended December 31, Year 2 FCU 9,600,000 5,700,000 500,000 1,300,000 400,000 FCU 1,700,000 Following is the Balance Sheet of Par at December 31, Year 2: Cash, Accounts Receivable Inventory Goodwill Plant and equipment (net) PAR $ 1,000,000 850,000 50,000 2,000,000 $ 3,900,000 Accounts payable Note payable Common shares Retained earnings $ 200,000 900,000 1,500,000 1,300,000 $ 3,900,000