Page 152 Proportionate Consolidation Method

Exhibit 4.1 on Page 152

Calculation of Acqusition Differential and Allocation of Acquisition Differential (Calculation 1)
Purchase Price 80% of the share of SLtd or 8000 Shares 72,000
Less Book Value of Net Assets of S Ltd
Common Shares - S Ltd 40,000 32,000
Retained Earnings - S Ltd 30,000 24,000 56,000
Acqusition Differential 16,000
Less Fair Market Value Increments (FMVI) =FMV - BV
Inventory 22,000-20,000 2,000 1,600
Plant 59000-50000 9,000 7,200
Patent +10000-11000 (1,000) (800) 8,000
Less Fair Market Value Increments (FMVI) Liabilities
Long Term Debt 25000-22,000 3,000 2,400 2,400 5,600
Goodwill 10,400

Consolidated Balance Sheet of P Ltd as at June 30, Year 1

Purchase
P Ltd S Ltd FMVI Total
Price
Cash 100,000 9,600 (72,000) 37,600
Accounts Receivable 90,000 5,600 95,600
Inventory 130,000 16,000 1,600 147,600
Plant 280,000 40,000 7,200 327,200
Patent 8,800 (800) 8,000
Goodwill 10,400 10,400
626,400
Current Liabilities 60,000 6,400 66,400
Long Term Debt 180,000 17,600 2,400 200,000
Common Shares 200,000 32,000 (32,000) 200,000
Retained Earnings 160,000 24,000 (24,000) 160,000
626,400
Page 152 Fair Value Method - Entity Method - IFRS - Considers Consolidation of the Entity as a whole
Exhibit 4.1 on Page 152
Calculation of Acqusition Differential and Allocation of Acquisition Differential (Calculation 1)
Purchase Price 80% of the share of SLtd or 8000 Shares 72,000 Parent NCI
Implied Value of 100% of S Ltd is 72000 /80% 90,000 72,000 18,000
Less Book Value of Net Assets of S Ltd
Common Shares - S Ltd 40,000
Retained Earnings - S Ltd 30,000 70,000 56,000 14,000
Acqusition Differential 20,000
Less Fair Market Value Increments (FMVI) =FMV - BV
Inventory 22,000-20,000 2,000
Plant 59000-50000 9,000
Patent +10000-11000 (1,000) 10,000
Less Fair Market Value Increments (FMVI) Liabilities
Long Term Debt 25000-22,000 3,000 3,000 7,000 5,600 1,400
Goodwill 13,000 10,400 2,600
NCI Share on the date of acquisition would be 20% of the total value of the business $90,000 i.e 20% of 90, 000 = 18,000

Consolidated Balance Sheet of P Ltd as at June 30, Year 1 (Fair Value Enterprise Method)
Purchase
P Ltd S Ltd FMVI Total
Price
Cash 100,000 12,000 (72,000) 40,000
Accounts Receivable 90,000 7,000 97,000
Inventory 130,000 20,000 2,000 152,000
Plant 280,000 50,000 9,000 339,000
Patent 11,000 (1,000) 10,000
Goodwill 13,000 13,000
651,000
Current Liabilities 60,000 8,000 68,000
Long Term Debt 180,000 22,000 3,000 205,000
Common Shares 200,000 40,000 (40,000) 200,000
Retained Earnings 160,000 30,000 (30,000) 160,000
NCI 18,000 18,000
651,000
 NCI 8000 Shares 80% 72,000 9
100% 90000 90000

of 90, 000 = 18,000 18,000

Page 152 Identifiable Net Asset Method
This method is similar to the Fair Value Enterprise Method except the NCI share of Goodwill is deducted from Goodwill and d
Exhibit 4.1 on Page 152
Calculation of Acqusition Differential and Allocation of Acquisition Differential (Calculation 1)
Purchase Price 80% of the share of SLtd or 8000 Shares 72,000 Parent NCI
Implied Value of 100% of S Ltd is 72000 /80% 90,000 72,000 18,000
Less Book Value of Net Assets of S Ltd
Common Shares - S Ltd 40,000
Retained Earnings - S Ltd 30,000 70,000 56,000 14,000
Acqusition Differential 20,000
Less Fair Market Value Increments (FMVI) =FMV - BV
Inventory 22,000-20,000 2,000
Plant 59000-50000 9,000
Patent +10000-11000 (1,000) 10,000
Less Fair Market Value Increments (FMVI) Liabilities
Long Term Debt 25000-22,000 3,000 3,000 7,000 5,600 1,400
Goodwill 13,000 10,400 2,600
Less NCI Share of Goodwill (2,600)
True Goodwill under the Identifiable Net Asset Method is 10,400
NCI Share on the date of acquisition is
NCI Share on the date of acquisition would be 20% of the total value of the business $90,000 i.e 20% of 90, 000 = 18,000
Less NCI Share of Goodw
NCI Share
Consolidated Balance Sheet of P Ltd as at June 30, Year 1 Identifiable Net Asset Method)
Purchase
P Ltd S Ltd FMVI Total
Price
Cash 100,000 12,000 (72,000) 40,000
Accounts Receivable 90,000 7,000 97,000
Inventory 130,000 20,000 2,000 152,000
Plant 280,000 50,000 9,000 339,000
Patent 11,000 (1,000) 10,000
Goodwill 10,400 10,400 Reduced to the extent o
648,400
Current Liabilities 60,000 8,000 68,000
Long Term Debt 180,000 22,000 3,000 205,000
Common Shares 200,000 40,000 (40,000) 200,000
Retained Earnings 160,000 30,000 (30,000) 160,000
NCI 15,400 15,400 Reduced to the extent o
648,400

The only difference between the Fair Value Enterprise Method and the Identifiable Net Asset Method is
Goodwill and NCI
The NCI share of goodwill is deducted from Goodwill and
The NCI share of goodwill is deducted from NCI
I
ted from Goodwill and deducted from NCI

NCI 8000 Shares 80% 72,000 9

100% 90000 90000

of 90, 000 = 18,000 18,000

ess NCI Share of Goodwill (2,600)
15,400

Reduced to the extent of the NCI share of goodwill

Reduced to the extent of the NCI share of goodwill

Page 163
Balance Sheet of PLtd and S Ltd as at June 30, Year 1 Case1: For a 100% owned subsidiary the "negative go
P Ltd S Ltd Computation and Allocation of Acqui
Carrying Carrying Fair Value
Amount Amount Purchase Price (100% of the Shares of S Ltd)
Cash 100,000 12,000 12,000 Less Book Value of the Net Assets of S Ltd
Accounts Receivable 90,000 7,000 7,000 Common Shares of S Ltd
Inventory 130,000 20,000 22,000 Retained Earnings of S Ltd
Plant 280,000 50,000 59,000 Acquisition Differential
Patent 11,000 10,000 Less FMVI = FMV - BV
Goodwill Inventory 22,000 - 20,000
600,000 100,000 Plant 59,000 - 50,000
Patent 10,000 - 11,000
Current Liabilities 60,000 8,000 8,000 Long Term Debt 25,000 -22,000
Long Term Debt 180,000 22,000 25,000 Goodwill (Negative Goodwill)
Common Shares 200,000 40,000 Transferred to Retained Earnings
Retained Earnings 160,000 30,000 Goodwill (Negative Goodwill)
600,000 100,000

Page 165 Case 2: For a less than 100% owned subsidiary the "neg
the NCI proportionately. (if the Identifiable Net
Balance Sheet of PLtd and S Ltd as at June 30, Year 1
Purchase price for 80% of the Shares of S Ltd.
P Ltd S Ltd Implied Value of the Net Assets of S Ltd 60,000/
Carrying Carrying
Amount Amount Fair Value
Less Book Value of the Net Assets of S Ltd

Cash 100,000 12,000 12,000 Common Shares SLtd

Accounts Receivable 90,000 7,000 7,000 Retained Earning S Lts
Inventory 130,000 20,000 22,000 Acquisition Differential
Plant 280,000 50,000 59,000 Less FMVI = FMV - BV
Patent 11,000 10,000 Inventory 22,000 - 20,000
Goodwill Plant 59,000-50,000
600,000 100,000 Patent 10000-11000
Long Term Debt 25,000 -22,000
Current Liabilities 60,000 8,000 8,000 Goodwill (Negative Goodwill)
Long Term Debt 180,000 22,000 25,000 Less Allocated to NCI ( 20% of 2,000)
Common Shares 200,000 40,000 P Ltd (Parent Share of Negative Goodwill
Retained Earnings 160,000 30,000 Transfer to Retained Earnings of Parent
600,000 100,000 Goodwill

Page 165 Case3: For a less than 100% owned subsidiary the "neg
if the Fair Value Enterprise Method is Used)
Balance Sheet of PLtd and S Ltd as at June 30, Year 1 Purchase price for 80% of the Shares of S Ltd.
P Ltd S Ltd Implied Value of the Net Assets of S Ltd 60,000/
 Carrying Carrying
Fair Value Less Book Value of the Net Assets of S Ltd
Amount Amount
Cash 100,000 12,000 12,000 Common Shares SLtd
Accounts Receivable 90,000 7,000 7,000 Retained Earning S Lts
Inventory 130,000 20,000 22,000 Acquisition Differential
Plant 280,000 50,000 59,000 Less FMVI = FMV - BV
Patent 11,000 10,000 Inventory 22,000 - 20,000
Goodwill Plant 59,000-50,000
600,000 100,000 Patent 10000-11000
Long Term Debt 25,000 -22,000
Current Liabilities 60,000 8,000 8,000 Goodwill (Negative Goodwill)
Long Term Debt 180,000 22,000 25,000 Less Transfer to Retained Earnings of Parent S
Common Shares 200,000 40,000 Goodwill
Retained Earnings 160,000 30,000
600,000 100,000 NCI 20% of 75, 000
 % owned subsidiary the "negative goodwill" or bargain purchase is transferred to the Parent's Retained Earnings (increasse the parent'
Computation and Allocation of Acquisition Differential Consolidated Balance Sheet of P Ltd as at June 30, Y

P Ltd S Ltd
Price (100% of the Shares of S Ltd) 72,000
k Value of the Net Assets of S Ltd Cash 100,000 12,000
Shares of S Ltd 40,000 Accounts Receivable 90,000 7,000
Earnings of S Ltd 30,000 70,000 Inventory 130,000 20,000
n Differential 2,000 Plant 280,000 50,000
= FMV - BV Patent 11,000
22,000 - 20,000 2,000
000 - 50,000 9,000 600,000 100,000
,000 - 11,000 (1,000) 10,000
m Debt 25,000 -22,000 3,000 3,000 7,000 Current Liabilities 60,000 8,000
(Negative Goodwill) (5,000) Long Term Debt 180,000 22,000
ed to Retained Earnings 5,000 Common Shares 200,000 40,000
(Negative Goodwill) - Retained Earnings 160,000 30,000
600,000 100,000

than 100% owned subsidiary the "negative goodwill" or bargain purchase is allocated to the Parent's Retained Earnings and
roportionately. (if the Identifiable Net Asset Method is Used) Consolidated Balance Sheet of P Ltd as at Ju

P Ltd S Ltd
price for 80% of the Shares of S Ltd. 60,000
alue of the Net Assets of S Ltd 60,000/80% 75,000 Cash 100,000 12,000
k Value of the Net Assets of S Ltd
Accounts Receivable 90,000 7,000
Shares SLtd 40,000 Inventory 130,000 20,000
Earning S Lts 30,000 70,000 Plant 280,000 50,000
n Differential 5,000 Patent 11,000
I = FMV - BV
22,000 - 20,000 2,000 600,000 100,000
9,000
(1,000) 10,000 Current Liabilities 60,000 8,000
m Debt 25,000 -22,000 3,000 7,000 Long Term Debt 180,000 22,000
(Negative Goodwill) (2,000) Common Shares 200,000 40,000
ated to NCI ( 20% of 2,000) 400 Retained Earnings 160,000 30,000
ent Share of Negative Goodwill (1,600) NCI
o Retained Earnings of Parent 1,600 600,000 100,000
-

than 100% owned subsidiary the "negative goodwill" or bargain purchase is allocated to the Parent's Retained Earnings
Value Enterprise Method is Used) Consolidated Balance Sheet of P Ltd as at Ju
price for 80% of the Shares of S Ltd. 60,000 P Ltd S Ltd
alue of the Net Assets of S Ltd 60,000/80% 75,000 Cash 100,000 12,000
k Value of the Net Assets of S Ltd
Accounts Receivable 90,000 7,000
Shares SLtd 40,000 Inventory 130,000 20,000
Earning S Lts 30,000 70,000 Plant 280,000 50,000
n Differential 5,000 Patent 11,000
I = FMV - BV
22,000 - 20,000 2,000 600,000 100,000
9,000
(1,000) 10,000 Current Liabilities 60,000 8,000
m Debt 25,000 -22,000 3,000 7,000 Long Term Debt 180,000 22,000
(Negative Goodwill) (2,000) Common Shares 200,000 40,000
sfer to Retained Earnings of Parent S Ltd 2,000 Retained Earnings 160,000 30,000
- NCI
600,000 100,000
15,000
rnings (increasse the parent's retained earnings)
heet of P Ltd as at June 30, YEAR 1

Consolida
ted Totals
(72,000) 40,000
97,000
2,000 152,000
9,000 339,000
(1,000) 10,000

638,000

68,000
3,000 205,000
(40,000) 200,000
(30,000) 5,000 165,000
638,000

ned Earnings and

alance Sheet of P Ltd as at June 30, YEAR 1 NCI 20% of 75,000
Add The NCI Share of Negative Goodwill
20% of 2000)
(60,000) 52,000 NCI on the date of acquisition

97,000
2,000 152,000
9,000 339,000
(1,000) 10,000
-
650,000

68,000
3,000 205,000
(40,000) 200,000
(30,000) 1,600 161,600
15,000 400 15,400
650,000

ned Earnings
alance Sheet of P Ltd as at June 30, YEAR 1

(60,000) 52,000
 97,000
2,000 152,000
9,000 339,000
(1,000) 10,000
-
650,000

68,000
3,000 205,000
(40,000) 200,000
(30,000) 2,000 162,000
15,000 15,000
650,000
15,000

400
15,400
Page 167 - Subsidiary with Goodwill Exhibit 4.12 Fair Value Enterprise Method
Balance Sheet of PLtd and S Ltd as at June 30, Year 1 Computation and Allocation of Acquisition Differential
P Ltd S Ltd Purchase Price 80% of the Shares of S Ltd
Carrying Carrying Fair
Implied Value of 100% of S Ltd
Amount Amount Value
Cash 100,000 12,000 12,000 Less Book Value of the Net Assets of S Ltd
Accounts Receivable 90,000 7,000 7,000 Common Shares
Inventory 130,000 20,000 22,000 Retained Earnings
Plant 280,000 50,000 59,000
Goodwill 11,000 Less Existing Goodwill in S Ltd
Acquisition Differential
600,000 100,000 Less FMVI = FMV - BV
Inventory 22,000 -20,000
Current Liabilities 60,000 8,000 8,000 Plant 59,000 -50,000
Long Term Debt 180,000 22,000 25,000 Long Term Debt 25,000-22,000
Common Shares 200,000 40,000 Goodwill
Retained Earnings 160,000 30,000
600,000 100,000
 If there is existing good will on the date of the acquisition in the Subsidiary Balance Shee
Acquisition Differential Consolidated Balance Sheet of P Ltd as at June 30 Year 1
res of S Ltd 62,000 P Ltd S Ltd
Carrying Carrying
of 100% of S Ltd
77,500 Amount Amount
the Net Assets of S Ltd Cash 100,000 12,000 (62,000)
40,000 Accounts Receivable 90,000 7,000
30,000 Inventory 130,000 20,000
70,000 Plant 280,000 50,000
(11,000) 59,000 Goodwill 11,000 (11,000)
18,500
600,000 100,000
2,000
9,000 11,000 Current Liabilities 60,000 8,000
3,000 8,000 Long Term Debt 180,000 22,000
10,500 Common Shares 200,000 40,000 (40,000)
Retained Earnings 160,000 30,000 (30,000)
NCI 15,500
600,000 100,000
NCI Share is 20% of 77, 500 15,500
tion in the Subsidiary Balance Sheet, deduct that goodwill in calculation 1 and then compute the new goodwill.

50,000
97,000
2,000 152,000
9,000 339,000
10,500 10,500

648,500

68,000
3,000 205,000
200,000
160,000
15,500
648,500
Problem 4-6 Page 197 A-L = SE
Proportionate Consolidation Method

Computation and Allocation of Acquisition Differential

Puchase price for 70% of J Ltd 350 Shares @ $40 per share 14,000
Less Book Value of the Net Assets of J Ltd
Common Shares 46,500 70% 32,550
Retained Earnings (16,500) 70% (11,550) 21,000
Acquisition Differential (7,000)
Less FMVI = FMV - BV ( of J Ltd - the subsidiary)
Plant Assets ( 65,000 - 70,500) x 70% (3,850)
Long Term Debt (40,000 - 45,000) x 70% (3,500) (350)
Goodwill Negative (6,650)
Transferred to E Ltd Retained Earnings 6,650
Goodwill -

Fair Value Enterprise Method [Entity Method]

Computation and Allocation of Acquisition Differential

Puchase price for 70% of J Ltd 350 Shares @ $40 per share 14,000
Implied Value of 100% of J Ltd 14,000/70% 20,000 6,000
Less Book Value of the Net Assets of J Ltd =
Common Shares of J Ltd 46,500
Retained Earnings of J Ltd (16,500) 30,000 9,000
Acquisition Differential (10,000)
Less FMVI = FMV - BV
Plant Assets 65000-70500 (5,500)
Long Term Debt 40000 -45000 (5,000) (500) (150)
Negative Goodwill (9,500) (2,850)
Transferred to the Parent E Ltd's Retained Earnings 9,500
Goodwill -
NCI on the Date of the Acquisition is 30% of 20, 000 6,000 6,000

Identifiable Net Asset Method

Computation and Allocation of Acquisition Differential
Puchase price for 70% of J Ltd 350 Shares @ $40 per share 14,000
Implied Value of 100% of J Ltd 14,000/70% 20,000
Less Book Value of the Net Assets of J Ltd
Common Shares of J Ltd 46,500
Retained Earnings of J Ltd (16,500) 30,000
Acquisition Differential (10,000)
Less FMVI = FMV - BV
Plant Assets 65000-70500 (5,500)
Long Term Debt 40000 -45000 (5,000) (500)
Negative Goodwill (9,500)
NCI Share Allocated 2,850
Negative Good will Parent Share ( E Ltd) (6,650)
Transfer to Retained Earnings 6,650
Goodwill -

NCI 30% of $20,000 6,000

9500) 2,850
Total NCI 8,850
Consolidated Balance Sheet of E Ltd as at Dec 30, Year 6 (Proportionate Consolidation Method)

Eliminate 70% the

Purchase
E Ltd J Ltd Share Capital and FMVI
Price
RE of S Ltd

Cash and Receivables 96,000 13,650

Inventory 57,000 6,300
Plant Assets (net) 228,000 49,350 (3,850)
Intangible Assets 24,000 4,200

405,000 73,500
Current Liabilities 63,000 21,000
Long Term Debt 97,500 31,500 (3,500)
Common Shares 153,000 32,550 14,000 (32,550)
Lobo:
Retained Earnings (deficit) 91,500 (11,550)
Under the PCM only take the11,550 6,650
parent's share of the Assets
and Liabilities and SE of the
405,000 73,500Sub
Consolidated Balance Sheet of E Ltd as at Dec 30, Year 6 (Fair Value Enterprise Method)

Acquisition
Purchase
E Ltd J Ltd Differential
Price
Allocation

Cash and Receivables 96,000 19,500

Inventory 57,000 9,000
Plant Assets (net) 228,000 70,500 (5,500)
Intangible Assets 24,000 6,000

405,000 105,000
Current Liabilities 63,000 30,000
Long Term Debt 97,500 45,000 (5,000)
Common Shares 153,000 46,500 14,000 (46,500)
Retained Earnings (deficit) 91,500 (16,500) 16,500 9,500
NCI 6,000
405,000 105,000

Consolidated Balance Sheet of E Ltd as at Dec 30, Year 6 (Identifiable Net Assets Method)
 E Ltd J Ltd Purchase NCI
Price

Cash and Receivables 96,000 19,500

Inventory 57,000 9,000
Plant Assets (net) 228,000 70,500
Intangible Assets 24,000 6,000

405,000 105,000
Current Liabilities 63,000 30,000
Long Term Debt 97,500 45,000
Common Shares 153,000 46,500 14,000 (46,500)
Retained Earnings (deficit) 91,500 (16,500) 16,500
NCI 6,000
405,000 105,000
Acquisition Share Issue Consolidated
Costs Costs Totals

(2,500) (1,600) 105,550

63,300
273,500
28,200
470,550

84,000
125,500
(1,600) 165,400
(2,500) 95,650
-
470,550

Acquisition Share Issue Consolidated

Costs Costs Totals

(2,500) (1,600) 111,400

66,000
293,000
30,000
-
500,400
93,000
137,500
(1,600) 165,400
(2,500) 98,500
6,000
500,400
Acquisition Allocation Share
Differential of Negative Acquisition Issue
Costs
Allocation Goodwill Costs

(2,500) (1,600) 111,400

66,000
(5,500) 293,000
30,000
-
500,400
93,000
(5,000) 137,500
(1,600) 165,400
6,650 (2,500) 95,650
2,850 8,850
500,400
In the books of E Ltd (Parent)

Investment in J Ltd DR 14,000

Common Shares CR 14,000
( Being purchase price for 70% of the shares of J Ltd)
Purchase price = 350 shares @ $40 per share

Professional Charges Dr 2,500

Cash CR 2,500
(Being costs of arranging the acquisition)

Share Capital A/C Dr 1,600

Cash A/C Cr 1,600
(Cost of issuing Shares)
Problem 4-6 Page 197
Proportionate Consolidation Method

Computation and Allocation of Acquisition Differential

Puchase price for 70% of S Ltd 490 Shares @ $40 per share 19,600
Less Book Value of the Net Assets of S Ltd
Common Shares 46,500 70% 32,550
Retained Earnings (16,500) 70% (11,550) 21,000
Acquisition Differential (1,400)
Less FMVI
Plant Assets ( 65,000 - 70,500) x 70% (3,850)
Long Term Debt (40,000 -45,000) x 70% (3,500) (350)
Goodwill Negative (1,050)
Transferred to P Ltd Retained Earnings 1,050
Goodwill -

Fair Value Enterprise Method

Computation and Allocation of Acquisition Differential

Puchase price for 70% of S Ltd 490 Shares @ $40 per share 19,600
Implied Value of 100% of J Ltd 19,600/70% 28,000
Less Book Value of the Net Assets of J Ltd
Common Shares of J Ltd 46,500
Retained Earnings of J Ltd (16,500) 30,000
Acquisition Differential (2,000)
Less FMVI = FMV - BV
Plant Assets 65000-70500 (5,500)
Long Term Debt 40000 -45000 (5,000) (500)
Negative Goodwill (1,500)
Transferred to the Parent E Ltd's Retained Earnings 1,500
Goodwill -
NCI on the Date of the Acquisition is 30% of 28 000 8,400

Identifiable Net Asset Method

Computation and Allocation of Acquisition Differential

Puchase price for 70% of S Ltd 490 Shares @ $40 per share 19,600
Implied Value of 100% of J Ltd 19,600/70% 28,000
Less Book Value of the Net Assets of J Ltd
Common Shares of J Ltd 46,500
Retained Earnings of J Ltd (16,500) 30,000
Acquisition Differential (2,000)
Less FMVI = FMV - BV
Plant Assets 65000-70500 (5,500)
Long Term Debt 40000 -45000 (5,000) (500)
Negative Goodwill (1,500)
NCI Share Allocated 450
Negative Good will Parent Share ( E Ltd) (1,050)
Transfer to Retained Earnings 1,050
Goodwill -

NCI 30% of $28,000 8,400

9500) 450
Total NCI 8,850
Consolidated Balance Sheet of E Ltd as at Dec 30, Year 6 (Proportionate Consolidation Method)

Acquisition
E Ltd J Ltd
Costs

Cash and Receivables 96,000 13,650 (2,500)

Inventory 57,000 6,300
Plant Assets (net) 228,000 49,350 (3,850)
Intangible Assets 24,000 4,200

405,000 73,500
Current Liabilities 63,000 21,000
Long Term Debt 97,500 31,500 (3,500)
Common Shares 153,000 32,550 19,600 (32,550)
Retained Earnings (deficit) 91,500 (11,550) 11,550 1,050 (2,500)

405,000 73,500
Consolidated Balance Sheet of E Ltd as at Dec 30, Year 6 (Fair Value Enterprise Method)

Acquisition
E Ltd J Ltd
Costs

Cash and Receivables 96,000 19,500 (2,500)

Inventory 57,000 9,000
Plant Assets (net) 228,000 70,500 (5,500)
Intangible Assets 24,000 6,000

405,000 105,000
Current Liabilities 63,000 30,000
Long Term Debt 97,500 45,000 (5,000)
Common Shares 153,000 46,500 19,600 (46,500)
Retained Earnings (deficit) 91,500 (16,500) 16,500 1,500 (2,500)
NCI 8,400
405,000 105,000

Consolidated Balance Sheet of E Ltd as at Dec 30, Year 6 (Identifiable Net Assets Method)

E Ltd J Ltd

Cash and Receivables 96,000 19,500

Inventory 57,000 9,000
Plant Assets (net) 228,000 70,500 (5,500)
Intangible Assets 24,000 6,000
 405,000 105,000
Current Liabilities 63,000 30,000
Long Term Debt 97,500 45,000 (5,000)
Common Shares 153,000 46,500 19,600 (46,500)
Retained Earnings (deficit) 91,500 (16,500) 16,500
NCI 8,400
405,000 105,000
Share Issue
Costs

(1,600) 105,550
63,300
273,500
28,200
470,550

84,000
125,500
(1,600) 171,000
90,050
-
470,550

Share Issue
Costs

(1,600) 111,400
66,000
293,000
30,000
-
500,400
93,000
137,500
(1,600) 171,000
90,500
8,400
500,400

Share
Acquisition
Issue
Costs
Costs
(2,500) (1,600) 111,400
66,000
293,000
30,000
-
 500,400
93,000
137,500
(1,600) 171,000
1,050 (2,500) 90,050
450 8,850
500,400