The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: Cash and receivables Inventory E Ltd. $ 96,150 57,300 228,600 24,150 $ 406,200 J Ltd. $ 19,800 9,150 70,800 6,300 $106,050 $ 30,100 45,200 Plant assets (net) Intangible assets Current liabilities Long-term debt Common shares Retained earnings (deficit) $ 63,300 97,800 153,600 91,500 $406,200 46,600 (15,850) $106,050 On December 31, Year 6, E Ltd. issued 483 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 $ 2,530 1,660 $ 4,190 The carrying amounts of J Ltd's net assets were equal to fair values on this date except for the following: Plant assets Long-term debt Fair value. $ 65,150 40,600 E Ltd. was identified as the acquirer in the combination.