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

	Petron			Seeview
Cash and receivables	$	93,800		$	20,450
Inventory		60,900			8,550
Plant assets (net)		203,800			60,450
Intangible assets		33,400			7,100
	$	391,900		$	96,550
Current liabilities	$	66,300		$	28,000
Long-term debt		94,650			40,900
Common shares		140,900			40,450
Retained earnings (deficit)		90,050			(12,800	)
	$	391,900		$	96,550

On June 30, Year 2, Petron Co. purchased 90% of the outstanding shares of Seeview Co. for $59,400 cash. Legal fees involved with the acquisition were an additional $2,700. These two transactions were the only transactions on this date. The carrying amounts of Seeviews net assets were equal to fair value except for the following:

	Fair Value
Inventory	$ 10,450
Plant assets	70,900
Intangible assets	10,900
Long-term debt	34,200

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 Seeviews 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 $22,600.

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 Petrons 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	$	$		$		$	$