Purchase of Shares Parent Co. purchases 100% of the common shares of Subsidiary Co. for $1,000,000 by issuing $1,000,000 worth of its own common shares. Subsidiary Co. Balance Sheet Before Column A Subsidiary Co. Acquisition Carrying Value Fair Value Current Assets Cash 25,000 25,000 Accounts Receivable, net Prepaid Deposits 5,000 5,000 50,000 Inventory, net 1,000,000 50,000 1,200,000 Total Current Assets 1,080,000 Long-term Assets Patent Vehicles 100,000 350,000 250,000 250,000 Accumulated depreciation, vehicles 80,000 270,000 Total Long-term Assets 370,000 Total Assets 1,450,000 Current Liabilities Accounts payable and accruals 10,000 Deferred revenue 120,000 10,000 135,000 Total Current Liabilities 130,000 Long-term Liabilities Shareholder loan Bond payable Total Long-term liabilities Equity 500,000 500,000 100,000 120,000 600,000 Common shares 100 Shareholders' Equity 719,900 Total Equity Total Liabilities and Equity 720,000 1,450,000 Balance Sheet After Acquisition Carrying Value