Required information Par Inc. (Par) purchased 70% of the outstanding voting shares of Sub Inc. (Sub) for $700,000 on January 1, 2023. On that date, Sub had common shares and retained earnings worth $410,000 and $170,000, respectively. The equipment had a remaining useful life of 5 years from the date of acquisition. Sub's bonds mature on December 31, 2028. The inventory was sold in the year following the acquisition. Both companies use straight line amortization for the equipment, and no salvage value is assumed for assets. The effective interest rate method is used to amortize the bond discount. Par and Sub declared and paid $10,000 and $5,000 in dividends, respectively during the year. Par uses the fair value enterprise (FVE) method to value the non-controlling interest in Sub on the acquisition date. The balance sheets of both companies, as well as Sub's fair values immediately following the acquisition are shown below: Cash Accounts receivable Inventory Par Inc. Sub Inc. Sub Inc. (carrying value) (carrying value) | (fair value) $600,000 $515,000 $515,000 140,000 85,000 85,000 60,000 45,000 60,000 Investment in Sub Inc. 700,000 Equipment (net) Land 50,000 180,000 185,000 115,000 200,000 Total assets $1,550,000 $940,000 Current liabilities $100,000 $280,000 280,000 Bonds payable, 3% 160,000 80,000 71,879 Common shares 800,000 410,000 Retained earnings 490,000 170,000 Total liabilities and equity $1,550,000 $940,000 The following are the financial statements for both companies for the fiscal year ended December 31, 2024: Income Statements Sales $800,000 $300,000 Investment revenue 33,422 Less: expenses: Cost of goods sold 240,000 180,000 Depreciation 10,000 20,000 Interest expense Other expenses Net income 12,000 40,000 8,000 10,000 $563,422 $50,000 Retained Earnings Statements Balance, January 1, 2024 $477,964 $170,000 Net income 563,422 50,000 Dividends (10,000) (5,000) Balance, December 31, 2024 $1,031,386 $215,000 Balance Sheets Par Inc. Sub Inc. Cash Accounts receivable Investment in Sub Inventory Equipment (net) Land Total assets Current liabilities Bonds payable Common shares $647,500 $665,000 250,000 35,000 717,886 90,000 45,000 750,000 170,000 115,000 $2,455,386 $1,030,000 $464,000 $325,000 160,000 80,000 800,000 410,000 Retained earnings Total liabilities and equity 1,031,386 $2,455,386 215,000 $1,030,000 Other information: During 2024, Sub borrowed $10,000 in cash from Par, interest free, to finance its operations. The amount remains unpaid as December 31, 2024. Par uses the equity method to account for its investment in Sub. The bonds pay interest on December 31 each year at a stated rate of 3%. The market rate of interest on January 1, 2023 was 5%. Prepare a consolidated balance sheet for Par Inc. as at December 31, 2024.