To expand its market penetration in the retail clothing market, Balmoral Designs Ltd. (Balmoral) purchased 100 percent of the out standing shares of Chipman Fine Clothiers Inc. (Chipman). Balmoral paid $4,200,000 cash for the shares and its management determined that at the time of acquisition the fair value of Chipman's identifiable assets and liabilities was $2,400,000. The following information was obtained as of the date Chipman was acquired and was prepared before the purchase occurred:

Required:
Calculate the amounts that would appear on Balmoral€™s consolidated balance sheet on the date it acquiredChipman.

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Chipman (carrying Chipman Chipman Balmoral amounts) fair values) S 5,000,000750,000 S750,000 (carryingChipman Bal Ioral amounts) fair values) Current assets $7,000,000 $1,900,000 $2,400,000Current liabilities Non-current Non-current 2,000,000 400,000 5,000,0001,800,000 assets 5000,050,000 0,000 liabilities 420,000 Shareholders' equity Total liabilities and Total assets 00,000 $2,950,000 shareholders' equity S12000,0002,950,000