The balance sheets of E Ltd. and Ltd. on December 30, Year 6, were as follows: Cash and receivables Inventory Plant assets (net) Intangible assets E Ltd. $ 96,980 58,888 231,680 24,980 $ 412,200 $ 64,880 99,380 156,680 91, see $ 412,280 3 Ltd. $ 21,300 9,900 72,300 7,800 $ 111,300 $ 30, 100 45,200 46,600 (10,600) $ 111,300 Current liabilities Long-term debt Common shares Retained earnings (deficit) On December 31. Year 6. E Ltd. issued 525 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 $ 2,689 1,960 $ 4,640 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 $ 65,900 43,680 E Ltd. was identified as the acquirer in the combination. 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 S Liabilities and Equity 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 S Liabilities and Equity S 0 The balance sheets of E Ltd. and Ltd. on December 30, Year 6, were as follows: Cash and receivables Inventory Plant assets (net) Intangible assets E Ltd. $ 96,980 58,888 231,680 24,980 $ 412,200 $ 64,880 99,380 156,680 91, see $ 412,280 3 Ltd. $ 21,300 9,900 72,300 7,800 $ 111,300 $ 30, 100 45,200 46,600 (10,600) $ 111,300 Current liabilities Long-term debt Common shares Retained earnings (deficit) On December 31. Year 6. E Ltd. issued 525 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 $ 2,689 1,960 $ 4,640 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 $ 65,900 43,680 E Ltd. was identified as the acquirer in the combination. 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 S Liabilities and Equity 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 S Liabilities and Equity S 0
