Reference no: EM132931224

Question - Parent and Sub Inc. had the following balance sheets on December 31, 2020:

Parent Sub

Current Assets $65,000 $11,000

Fixed Assets (net) $100,000 $61,000

Goodwill $2,000

Total Assets $165,000 $74,000

Current Liabilities $ 42,000 $35,000

Bonds Payable $25,000 $12,000

Common Shares $90,000 $12,000

Retained Earnings $8,000 $15,000

Total Liabilities and Equity $165,000 $74,000

On January 1, 2021, acquired Sub by issuing common shares in the amount of $50,000. On that date, Sub's fair value of Current Assets and Fixed Assets were worth $16,000 and $58,000 respectively. Current Liabilities were 34,000.

Further, on January 1, 2021, the fair value of Parent's Current and Fixed assets were worth $64,000 and $103,000 respectively.

Required - Create a consolidated balance sheet on the date of acquisition.