The balance sheets of Goetze Ltd. and Boudin Ltd. on December 30, 2019 were as follows. Cash and receivable Inventory Plant assets (net) Intangible assets Goetze. $ 96,000 87,000 198,000 24,000 $405,000 Boudin Ltd $ 25,000 40,000 75,000 10,000 $150,000 Fair Value $22,000 38,000 70,000 8,000 $35,000 57,000 Current liabilities Long-term debt Common Stock Retained Earnings (Deficit) $ 73,000 87,500 135,000 109.500 $405,000 $ 30,000 60,000 100,000 (40,000) $150,000 On December 31, 2019, Goetze issued 2,250 shares, with a fair market value (FMV) of $25 each, plus $10,000 long term debt for all of the outstanding shares of Boudin Ltd. Costs involved in the acquisition, paid in cash, were as follows. Costs of arranging the acquisition (legal costs) $2,500 Costs of issuing shares 1,500 $4,000 Goetze Ltd. was identified as the acquirer in the combination. REQUIRED: a) Calculate and allocate the Acquisition Differential to determine the value of goodwill to be recorded on the consolidated Balance Sheet. Use the entity theory for calculations. (4 marks) Note: You are not required to prepare a Consolidated Balance Sheet. b) What is the $ amount to be reported on the Consolidated Balance Sheet for: (5 marks) i. Common Shares ii. Retained Earnings Long term Debt The balance sheets of Goetze Ltd. and Boudin Ltd. on December 30, 2019 were as follows. Cash and receivable Inventory Plant assets (net) Intangible assets Goetze. $ 96,000 87,000 198,000 24,000 $405,000 Boudin Ltd $ 25,000 40,000 75,000 10,000 $150,000 Fair Value $22,000 38,000 70,000 8,000 $35,000 57,000 Current liabilities Long-term debt Common Stock Retained Earnings (Deficit) $ 73,000 87,500 135,000 109.500 $405,000 $ 30,000 60,000 100,000 (40,000) $150,000 On December 31, 2019, Goetze issued 2,250 shares, with a fair market value (FMV) of $25 each, plus $10,000 long term debt for all of the outstanding shares of Boudin Ltd. Costs involved in the acquisition, paid in cash, were as follows. Costs of arranging the acquisition (legal costs) $2,500 Costs of issuing shares 1,500 $4,000 Goetze Ltd. was identified as the acquirer in the combination. REQUIRED: a) Calculate and allocate the Acquisition Differential to determine the value of goodwill to be recorded on the consolidated Balance Sheet. Use the entity theory for calculations. (4 marks) Note: You are not required to prepare a Consolidated Balance Sheet. b) What is the $ amount to be reported on the Consolidated Balance Sheet for: (5 marks) i. Common Shares ii. Retained Earnings Long term Debt