Question 3 (14 marks) On January 1, 2012, Cranbrook Corporation acquired 75% of the outstanding common shares of Creston Company for a cash payment of $6,000,000 in cash. Costs associated with the acquisition amounted to $600,000. On that date, Creston's balance sheet included common shares of $4,400,000 and retained earnings of $2,200,000. The identiable net assets of Creston were equal to their book values except that capital assets had a fair value that was $600,000 greater than their carrying value. These capital assets had a remaining life of twenty years and no signicant anticipated residual value after that time. Inventories had a fair value which was $150,000 less than their book value. These inventories were all sold by the end of 2012. In addition, long-term debt had a fair value that was $170,000 greater than its carrying value. The longterm debt matures on June 30, 2020. Goodwill arising from the business combination was assessed annually for impairment. The only impairment since the acquisition date amounted to $100,000 in 2015