The balance sheets of Maple Ltd$.$ and Leafs Ltd$.$ on December $30,2020$ were as follows.

Maple Leafs Ltd Fair Value

Cash and receivable $ $96,000$ $ $25,000$ $$22,000$

Inventory $87,00040,00038,000$

Plant assets $($net$)198,00075,00070,000$

Intangible assets $24,00010,0008,000$

$$405,000$ $$150,000$

Current liabilities $ $73,000$ $ $30,000$ $$35,000$

Long$-$term debt $87,50060,00057,000$

Common Stock $135,000100,000$

Retained Earnings $($Deficit$)109,500(40,000)$

$$405,000$ $$150,000$

On December $31,2019,$ Maple issued $2,500$ shares, with a fair market value $($FMV$)$ of $$22\mathrm{.}50$ each, plus

$$8,000$ long term debt for all of the outstanding shares of Leafs Ltd$.$

Costs involved in the acquisition, paid in cash, were as follows.

Costs of arranging the acquisition $($legal costs$)$ $$3,500$

Costs of issuing shares $1,800$

$$5,300$

Maple 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

iii. Long term Debt