The balance sheets of Petron Co$.$ and Seeview Co$.$ on June $29,$ Year $2,$ were as follows:

Petron Seeview

Cash and receivables $ $94,500$ $ $20,800$

Inventory $61,2508,900$

Plant assets $($net$)204,50060,800$

Intangible assets $33,7507,800$

$ $394,000$ $ $98,300$

Current liabilities $ $67,000$ $ $28,350$

Long$-$term debt $95,00041,600$

Common shares $141,25040,800$

Retained earnings $($deficit$)90,750(12,450)$

$ $394,000$ $ $98,300$

On June $30,$ Year $2,$ Petron Co$.$ purchased $90\%$ of the outstanding shares of Seeview Co$.$ for $$65,700$ cash. Legal fees involved with the acquisition were an additional $$3,050.$ These two transactions were the only transactions on this date. The carrying amounts of Seeview$$s net assets were equal to fair value except for the following:

Fair Value

Inventory $ $10,800$

Plant assets $71,600$

Intangible assets $11,600$

Long$-$term debt $34,550$

Seeview has a five$-$year agreement to supply goods to Bardier. Both Petron and Seeview believe that Bardier will renew the agreement at the end of the current contract. The agreement is between Seeview and Bardier; it cannot be transferred to another company without Seeview$$s consent. Seeview does not report any value with respect to this contract on its balance sheet. However, an independent appraiser feels that this contract is worth $$22,250.$

Required:

$($a$)$ Assume that Petron Co$.$ is a public entity. Prepare the consolidated balance sheet of Petron Co$.$ on June $30,$ Year $2.$

$($b$)$ Assume that Petron is a private entity, uses ASPE, and chooses to use the equity method to account for its investment in Seeview. Prepare Petron$$s June $30,$ Year $2,$ separate$-$entity balance sheet after the business combination.

$($c$)$ Prepare Petron Co$.$s consolidated balance sheet using the worksheet approach. $($Values in the first two columns and last column $($the "parent", "subsidiary" and "consolidated" balances$)$ that are to be deducted should be indicated with a minus sign, while all values in the "Entry" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Omit $ sign in your response.$)$

Consolidated Financial Statement Working Paper

Petron Co$.$

Consolidated Balance Sheet

June $30,$ Year $2$

Entries

Petron Seeview Dr$.$ Cr$.$ Consolidated

Cash and receivables $

$

$

$

Inventory

$

Plant assets $($net$)$

Intangible assets

Investment in Seeview

Acquisition differential

Customer contract

Goodwill

$

$

$

Liabilities:

Current liabilities $

$

$

Long$-$term debt

Shareholders' equity:

Common shares

Retained earnings

Non$-$controlling interest

Total $

$

$

$

$

Averd: $$6\mathrm{.}00$ points

Imventory

$$10,800$

$34,600$

Rociulred:

Rolerwenes:

Leaming Objective: $04-04$ Explain the concept of negative

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