P3-5 The account balances of Islewood Ltd. and Richmond Ltd. at January 1, 2019, were as follows: Islewood Richmond Share capital600,000 shares 600,000 -200,000 shares 200,000 Retained earnings 550,000 250,000 Accounts payable 10,000 15,000 Provisions 320,000 15,000 1,480,000 480,000 Land 400,000 200,000 Patent 400,000 200,000 Inventory 480,000 75,000 Cash 200,000 5,000 1,480,000 480,000 The fair values of Richmond's assets at January 1, 2019, were: Land 240,000 Patent 220,000 Inventory 95,000 The two companies decided to combine on January 1, 2019, with Islewood issuing one share (fair value $2) and $0.50 cash for each share in Richmond. The tax rate is 30%. Required (a) Prepare the consolidated statement of financial position immediately after Islewood's acquisition of shares in Richmond. (b) Prepare the consolidation process adjustments required for the consolidation at December 31, 2020. Assume all inventory on hand at January 1, 2019, was sold in the following three months, and that the patent has a further four-year life