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The balance sheets of Percy Corp. and Saltz Ltd. on December 31. Year 10, are shown below: Cash Accounts receivable Inventory Plant Accumulated amortization Trademarks

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The balance sheets of Percy Corp. and Saltz Ltd. on December 31. Year 10, are shown below: Cash Accounts receivable Inventory Plant Accumulated amortization Trademarks (net) Perey $ 203,000 51,500 62,250 482.500 (132,500) Salt 3 4.750 15,500 45,000 196,500 (91.500) 15,500 $ 185,750 $ 21,500 43,000 61,500 59,750 $ 185,750 Current liabilities Long-term debt Common shares Retained earnings $ 666.750 $ 103,000 164,500 221.500 177,250 666.750 The fair values of the identifiable net assets of Soltz Ltd. on December 31, Year 10, were as follows: Cash Accounts receivable Inventory Plant Trademarks 5 4,750 15,500 53,500 127.500 31,000 232,250 Current liabilities Long-term debt Net assets $ 21,500 39,500 61,000 5.171,250 In addition to the assets identified above. Saltz owned a taxi licence in the City of Moose Jaw. This licence expires in nine years. These licences are selling in the open market at approximately $58750 On January 1. Year 11. Percy Coro oald S178.000 in cash to acaulre 7.000 170%) of the common shares of Saltz Ltd Saltz's shares were Accounts receivable Inventory Plant Accumulated amortization Trademarka(net) AY 51,500 62,250 482,500 (132,500) 15,500 45,000 196,500 (91.500) 15.500 $ 185,250 $ 21,500 43.000 61,500 59,750 $ 185,750 $ 666,750 $ 103,000 164,500 221,500 177,250 $ 666,750 Current liabilities Long-term debt Common shares Retained earning The fair values of the identifiable net assets of Saltz Ltd. on December 31, Year 10, were as follows: Cash Accounts receivable Inventory Plant Trademark 5 4.750 15,500 53,500 127,500 31,000 232,250 Current liabilities Long-term debt Net asset $.21.500 39.500 61,000 $ 171,250 In addition to the assets identified above, Saltz owned a taxi ticence in the City of Moose Jaw. This licence expires in nine years. These On January 1. Year 11, Percy Corp paid $178,000 in cash to acquire 7,000 (70%) of the common shares of Salt Ltd. Saltz's shares were trading for $23 per share just after the acquisition by Percy Required: Prepare the consolidated balance sheet on January 1. Year 11

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