The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: Cash and receivables Inventory E Ltd. $ 96,450 J Ltd. $ 20,400 57,900 9,450 Plant assets (net) 229,800 71,400 Intangible assets 24,450 6,900 $ 408,600 $ 108,150 Current liabilities $ 63,900 $ 30,100 Long-term debt Common shares Retained earnings (deficit) 91,500 $ 408,600 $ 108,150 98,400 45,200 154,800 46,600 (13,750) On December 31, Year 6, E Ltd. issued 497 shares, with a fair value of $40 each, for 70% of the outstanding shares of J Ltd. Costs involved in the acquisition, paid in cash, were as follows: Costs of arranging the acquisition Costs of issuing shares $ 2,590 1,780 $ 4,370 The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following: Fair value Plant assets Long-term debt $ 65,450 41,800 E Ltd. was identified as the acquirer in the combination.