Problem 4-9, solve for consolidated balance sheet

Problem 4-9 LO2 The balance sheets of Percy Corp. and Saltz Lid. on December 31, Year 10, are shown below: Percy Saltz Cash $ 200,000 $ 4,000 Accounts receivable 50,000 14,000 Inventory 60,000 42,000 Plant 475,000 192,000 Accumulated amortization (125,000) (90,000) Trademarks (net) 14,000 $660,000 $176,000 Current liabilities $100,000 $ 20,000 Long-term debt 160,000 40,000 Common shares 220,000 60,000 Retained earnings 180,000 56,000 $660,000 $176,000 The fair values of the identifiable net assets of Saltz Ltd. on December 31, Year 10, were as follows: Cash $ 4,000 Accounts receivable 14,000 Inventory 52,000 Plant 120,000 Trademarks 28,000 218,000 Current liabilities $20,000 Long-term debt 38,000 58,000 Net assets $160,000 In addition to the assets identified above, Saltz owned a taxi licence in the City of Moose Jaw. This licence expires in nine years. These licences are selling in the open market at approximately $40,000. On January 1, Year 1 1, Percy Corp paid $175,000 in cash to acquire 7,000 (70%) of the common shares of Saltz Lid. Saltz's shares were trading for $20 per share just after the acquisition by Percy. Required Prepare the consolidated balance sheet on January 1, Year 11