On January 4, 20X7, Pradeesh Corp. acquired 100% of the outstanding common shares of Serena Inc. by a share- for- share exchange of its own shares valued at $ 1,000,000. The statements of financial position of both companies just prior to the share exchange are shown below. Serena has patents that are not shown on the SFP, but that have an estimated fair value of $ 200,000 and an estimated remaining productive life of four years. Serena’s buildings and equipment have an estimated fair value that is $ 300,000 in excess of carrying value, and the deferred charges are assumed to have a fair value of zero. Serena’s buildings and equipment are being depreciated on the straight-line basis and have a remaining useful life of 10 years. The deferred charges are being amortized over the following three years. Please note that the spreadsheet relating to the problem is available on the companion website for this text.

Required

Prepare a consolidated SFP for Pradeesh Corp., immediately following the share exchange.

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Statements of Rnancial Position December 31, 20X6 Pradeesh 110,000 140,000 110,000 1,500,000 (700,000) 85,000 80,000 55,000 800,000 (400,000) 120,000 740,000 $100,000 200,000 40,000 150,000 250,000 $740,000 Accounts and other receivables Inventories Buildings and equipment Accumulated depreciation Deferred charges 1,160,000 200,000 Accounts and other payables Bonds payable Deferred income taxes 60,000 600,000 300,000 $1,160,000 Retained earnings Pradeesh 300,000 shares,Serena 150,000 shares