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The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: E Ltd. J Ltd. Cash and receivables $

The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows:

E Ltd. J Ltd.
Cash and receivables $ 96,050 $ 19,600
Inventory 57,100 9,050
Plant assets (net) 228,200 70,600
Intangible assets 24,050 6,100
$ 405,400 $ 105,350
Current liabilities $ 63,100 $ 30,100
Long-term debt 97,600 45,200
Common shares 153,200 46,600
Retained earnings (deficit) 91,500 (16,550 )
$ 405,400 $ 105,350

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 $ 2,510
Costs of issuing shares 1,620
$ 4,130

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 $ 65,050
Long-term debt 40,200

E Ltd. was identified as the acquirer in the combination.

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Required: (a) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6. under the identifiable net assets method. E Ltd. Consolidated Balance Sheet December 31, Year 6 Assets Cash and receivables Inventory Plant assets Intangible assets s 0 Liabilities and Equity Current liabilities Long-term debt Common shares Retained earnings Non-controlling interest S 0 (b) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the fair value enterprise method. E Ltd. Consolidated Balance Sheet December 31, Year 6 Assets $ 0 Liabilities and Equity $ 0

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