On January 2, 20X7, Victory Co. acquired 60% of the shares of Sauce Ltd. by issuing shares valued at $1,200,000. On this date, Sauces building and machinery had estimated remaining useful lives of 10 years and 5 years respectively. Both Victory and Sauce use straight-line depreciation. The separate-entity statements of financial position for Victory and Sauce just prior to the acquisition are presented below.

Statements of Financial Position As of January 1, 20X7

Victory Co. Sauce Ltd.

	(Carrying Value)	(Carrying Value)	(Fair Value)
Noncurrent assets:
Land	$ -	$ 360,000	$ 640,000
Building	2,080,000	1,200,000	1,040,000
Accumulated depreciation	(320,000)	(400,000)
Machinery	1,400,000	1,040,000	80,000
Accumulated depreciation	(560,000)	(640,000)
Total noncurrent assets	2,600,000	1,560,000
Current assets:
Inventories	640,000	240,000	240,000
Accounts receivable	560,000	160,000	160,000
Cash	400,000	80,000	80,000
Total current assets	1,600,000	480,000
Total assets	$4,200,000	$2,040,000
Shareholders Equity:
Common shares	$1,760,000	$ 800,000
Retained earnings	1,800,000	520,000
Total shareholders equity	3,560,000	1,320,000
Noncurrent liabilities:
Long-term bank loan	-	400,000	400,000
Current liabilities:
A/P and accrued liabilities	640,000	320,000	320,000
Total liabilities	640,000	720,000
Total liabilities and shareholders equity	$4,200,000	$2,040,000

1. Prepare a consolidated statement of financial position at the acquisition date.