Leighton Corp. has just acquired 100% of the voting shares of Knightbridge Inc. and is now preparing the financial data needed to consolidate this new subsidiary. Leighton paid $700,000 for its investment. Details of all of Knightbridge€™s assets and liabilities on acquisition date were as follows:

Required:
Determine the amounts that will be used to prepare a consolidated statement of financial position on the date of acquisition, assuming that Knightbridge€™s tax rate is 45%. Knightbridge has not set up deferred tax amounts for any of its assets or liabilities.

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Land Buildings Equipment Inventory Instalment accounts receivable Trade liabilities Fair value $100,000 180,000 200,000 150,000 120,000 240,000 Tax base $100,000 110,000 130,000 150,000 240,000