On July 31, 2020, Swifty Company paid $3,540,000 to acquire all of the common shares of Blue Spruce Incorporated, which became a division of Swifty. Blue Spruce reported the following statement of financial position at the time of the acquisition Blue Spruce Inc. Statement of Financial Position As at July 31, 2020 Current assets $944,000 Current liabilities $708,000 Non-current assets 3.186.000 Long-term liabilities 590,000 Shareholders' equity 2.832.000 Total liabilities and Total assets $4.130.000 shareholders equity $4.130.000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Blue Spruce was $3,245,000. Over the next six months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2020, Blue Spruce reports the following statement of financial position information: