The notes to the 2011 financial statements of Canadian Tire Corporation contained the following information:
8.1 Acquisition of FGL Sports
On August 18, 2011, the Company acquired control of FGL Sports. The Company’s approximately 97% ownership of the issued and outstanding Class “A” shares (the “Common shares”) of FGL Sports included the shares acquired on and prior to August 18, 2011. The Company acquired the remaining Common shares of FGL Sports on August 25, 2011.
Assume that Canadian Tire acquired 100 percent of the fair value of the net assets of FGL Sports in 2011 for $ 800 million in cash. FGL’s assets at the time of the acquisition had a carrying amount of $ 887 million and a fair value of $ 1,149 million. Canadian Tire also assumed FGL’s liabilities, which had a carrying amount of $ 550 million and a fair value of $ 657 million.
Required:
Prepare the journal entry to record the acquisition of the net assets of FGL Sports.