The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: E Ltd. $ 96,600 58,200 230,400 24,600 Cash and receivables Inventory Plant assets (net). $ 409,800 $ 64,200 Intangible assets 98,700 155,400 91,500 J Ltd. $ 20,700 9,600 71,700 7,200 $ 109,200 $ 30,100 45,200 46,600 (12,700) Current liabilities Long-term debt Common shares Retained earnings (deficit) $ 409,800 $ 109,200 On December 31, Year 6, E Ltd. issued 497 shares, with a fair value of $28 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 $ 2,620 1,840 $ 4,460 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 $ 65,600 Long-term debt 42,400 E Ltd. was identified as the acquirer in the combination.