The statements of financial position (SFP) of AX Inc and BY Ltd on December 31, Year 1 were as follows On December 31, Year 1 AX acquired 80 (8,000 shares) of BYS common shares for $80,000, plus an agreement to pay an additional $80,000 if the company sales grew by more than 20 over the next two years An independent business valuator valued this contingent consideration at $20,000, had this been paid at the date of acquisition itself At this date, just after the acquisition by AX, BYs shares were trading for $9 per share Additional information Direct costs of acquisition were $8,000 An unreported new patent by BY Inc was valued at $3,000 Required Calculate consolidated goodwill at the date of acquisition under the proportionate consolidated method Prepare a consolidated statement of financial position at the date of acquisition under each of the following Identifiable net assets (INA) method Fair value enterprise (FVE) method Prepare the journal entries for consolidation under the Worksheet approach for the FVE Method Cash Accouts receivables Lrventory Plant Assets Accumulated Depreciation Patents Goodwill AX BY Crying Amout Cunying Anout 250,000 $ 55,000 $ $ 55,000 $ 35,000 $ $ 75,000 $ 22,000 $ 400,000 $ 90,000 $ $ (50,000) $ (10,000) 200,000 $ 50,000 $ $ 65,000 $ 7,000 $ 995,000 $ 249,000 Fair Vale 55,000 20,000 30,000 60,000 65,000 $ $ 25,000 95,000 Current Liabilities Long term debt Common shares Retained Earnings 100,000 $ 300,000 $ 250,000 $ 345,000 $ 995,000 $ 15,000 $ 100,000 $ 100,000 34,000 249,000 $ $ Cash Accouts receivables Lrventory Plant Assets Accumulated Depreciation Patents Goodwill AX BY Crying Amout Cunying Anout 250,000 $ 55,000 $ $ 55,000 $ 35,000 $ $ 75,000 $ 22,000 $ 400,000 $ 90,000 $ $ (50,000) $ (10,000) 200,000 $ 50,000 $ $ 65,000 $ 7,000 $ 995,000 $ 249,000 Fair Vale 55,000 20,000 30,000 60,000 65,000 $ $ 25,000 95,000 Current Liabilities Long term debt Common shares Retained Earnings 100,000 $ 300,000 $ 250,000 $ 345,000 $ 995,000 $ 15,000 $ 100,000 $ 100,000 34,000 249,000 $ $

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The statements of financial position (SFP) of AX Inc. and BY Ltd. on December 31, Year-1 were as follows: On December 31, Year-1 AX acquired

The statements of financial position (SFP) of AX Inc. and BY Ltd. on December 31, Year-1 were as follows:

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On December 31, Year-1 AX acquired 80% (8,000 shares) of BYS common shares for $80,000, plus an agreement to pay an additional $80,000 if the company sales grew by more than 20% over the next two years. An independent business valuator valued this contingent consideration at $20,000, had this been paid at the date of acquisition itself. At this date, just after the acquisition by AX, BYs shares were trading for $9 per share.

Additional information - Direct costs of acquisition were $8,000. An unreported new patent by BY Inc. was valued at $3,000.

Required:

Calculate consolidated goodwill at the date of acquisition under the proportionate consolidated method
Prepare a consolidated statement of financial position at the date of acquisition under each of the following
1. Identifiable net assets (INA) method
2. Fair value enterprise (FVE) method
Prepare the journal entries for consolidation under the Worksheet approach for the FVE Method.

Cash Accouts receivables Lrventory Plant Assets Accumulated Depreciation Patents Goodwill AX BY Crying Amout Cunying Anout 250,000 $ 55,000 $ $ 55,000 $ 35,000 $ $ 75,000 $ 22,000 $ 400,000 $ 90,000 $ $ (50,000) $ (10,000) 200,000 $ 50,000 $ $ 65,000 $ 7,000 $ 995,000 $ 249,000 Fair Vale 55,000 20,000 30,000 60,000 65,000 $ $ 25,000 95,000 Current Liabilities Long-term debt Common shares Retained Earnings 100,000 $ 300,000 $ 250,000 $ 345,000 $ 995,000 $ 15,000 $ 100,000 $ 100,000 34,000 249,000 $ $ Cash Accouts receivables Lrventory Plant Assets Accumulated Depreciation Patents Goodwill AX BY Crying Amout Cunying Anout 250,000 $ 55,000 $ $ 55,000 $ 35,000 $ $ 75,000 $ 22,000 $ 400,000 $ 90,000 $ $ (50,000) $ (10,000) 200,000 $ 50,000 $ $ 65,000 $ 7,000 $ 995,000 $ 249,000 Fair Vale 55,000 20,000 30,000 60,000 65,000 $ $ 25,000 95,000 Current Liabilities Long-term debt Common shares Retained Earnings 100,000 $ 300,000 $ 250,000 $ 345,000 $ 995,000 $ 15,000 $ 100,000 $ 100,000 34,000 249,000 $ $