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

	P Ltd	S Ltd.
Cash and receivables	$153,600	$31,200
Inventory	91,200	14,400
Plant assets (net)	364,800	112,800
Intangible assets	38,400	9,600
	$648,000	$168,000
Current Liabilities	$100,800	48,000
Long-term debt	156,000	72,000
Common shares	244,800	74,400
Retained earnings (deficit)	146,400	(26,400)
	$648,000	$168,000

On December 31, Year 6, P Ltd. Issued 350 shares, with a fair value of $160 each, for 75% of the outstanding shares of S Ltd. Costs involved in the acquisition paid in cash were as follows:

Costs of arranging the acquisition $4,000

Costs of issuing shares 2,560

$6,560

The carrying amounts of S Ltds net assets were equal to fair value on this date except for the following:

Plant assets Fair Value $104,000

Long-term debt Fair Value 64,000

P Ltd was identified as the acquirer.

Require:

Prepare the journal entries for the consolidation worksheet. Then use the worksheet and prepare the consolidated balance sheet of P Ltd. on December 31, year 6, under the Fair Value Enterprise Theory.

Prepare the consolidated balance sheet of P Ltd. On December 31, Year 6, under identifiable net asset theory using direct method.