question:

On January 31st.2019, Oats Limited purchased 100% of the outstanding common shares of Wheat Incorporated for $3,500,000. On that date, Wheat's shareholders' equity consisted of common shares of $2,500,000 and retained earnings of $800,000. The financial statements for Oats and Wheat at January 31st. 2019 were as follows:- Balance Sheets January 31st.2019 Oats... twoesses..... Wheat Cash... $ 340,000.. $ 70,000 Accounts Receivable.......... 800,000. 330,000 Inventory....... ..west.1,400,000... 580,000 Property plant & equipment... ..2,700,000..... .... 5,480,000 Accumulated Depreciation.................:.:15:14 (360,000 ,......:19:"(400,000) Investment in Wheat.. .3,500,000. Goodwill........" TOTAL ASSETS.. ....58,380,000................$6,180 ,000 Current Liabilities.. ..S 200,000... ..... $ 510,000 Notes Payable....... 2,900,000.... Common Shares.. 1,000,000... Retained Earnings... 4,280,000. .. .. 800,000 TOTAL LIABILITIES & OWNERS EQUITY......... ..$8.380,000..... $6,180,000Additional [EM 1, ln negotiating the purchase price, it was agreed that the fair value of all of Wheat's assets and liabilities were equal to their carrying values, except for the ML: Item Carrying Value Fair Value inventory ................................................... i580,000 ........................... 600,000 Equipment net .............................................. 5,400,000 .................. 300,000 Notes Payable .......................................... 2,Ei'l0,000........................2,400,000 ii. Wheat accounts for its investment using the cost method. i, Calculate the consolidated goodwill atJanuary 315'.2019{8 marks} ii. Prepare the working paper eliminating entries at January 313.2019 (8 marks) iii. Prepare the consolidated balance sheet for Oats 8: Wheat at January 31\". 2019 {14 marks} iv. if Oats had used the equity method to report the investment in Wheat, prepare the balance sheet of Oats at January 315'2019 {5 marks}