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

	Petron			Seeview
Cash and receivables	$	93,500		$	20,300
Inventory		60,750			8,400
Plant assets (net)		203,500			60,300
Intangible assets		33,250			6,800
	$	391,000		$	95,800
Current liabilities	$	66,000		$	27,850
Long-term debt		94,500			40,600
Common shares		140,750			40,300
Retained earnings (deficit)		89,750			(12,950	)
	$	391,000		$	95,800

On June 30, Year 2, Petron Co. purchased 90% of the outstanding shares of Seeview Co. for $56,700 cash. Legal fees involved with the acquisition were an additional $2,550. 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	$ 10,300
Plant assets	70,600
Intangible assets	10,600
Long-term debt	34,050

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 $22,750.

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.