Question #2: Liu Limited purchased all outstanding ordinary shares of Yang Plastics, Ltd. on December 31, 2017. Just before the purchase, condensed statements of financial position of the two companies were as follows.

		Lui Limited		Yang Plastics
Plant and equipment (net)		2,100,000		676,000
Current assets		1,480,000		435,500
		3,580,000		1,111,500
Share capitalordinary		1,950,000		525,000
Retained earnings		1,052,000		494,000
Current liabilities		578,000		92,500
		3,580,000		1,111,500

Liu used current assets of 1,228,750 to acquire the shares of Yang Plastics. The excess of this purchase price over the book value of Yang Plastics' net assets is determined to be attributable 84,000 to Yang Plastics' plant and equipment and the remainder to goodwill.

Instructions:

Prepare the entry for Liu Limited's acquisition of Yang Plastics, Ltd. Shares (using journal below).

Prepare a consolidated worksheet at December 31, 2017 (using template below).

Prepare a consolidated statement of financial position at December 31, 2017