South Ltd. acquired 100% of the voting shares of North Ltd. In exchange, South Ltd. issued 50,000 common shares, with a market value of $ 10 per share, to the common shareholders of North Ltd. Both companies have a December 31 year- end, and this transaction occurred on December 31, 20X6. The outstanding preferred shares of North Ltd. did not change hands. The call price of the North Ltd. preferred shares is equal to their carrying value.

Following are the statements of financial position of the two companies at December 31, 20X6, before the transactions took place:

Required
Prepare the consolidated SFP for the date of acquisition, December 31, 20X6, under the acquisition method.

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Statements of Financial Position As at December 31, 20X6 South Ltd. North Ltd. Carrying values $210,000 780,000 Carrying values Current assets Capital assets, net Goodwill Fair values $200,000 820,000 Fair values $260,000 860,000 150,000 110,000 $1,210,000 100,000 500,000 $990,000 $165,000 200,000 270,000 100,000 255,000 $990,000 90,00u 520,000 Current liabilities Long-term liabilities Preferred shares Common shares Retained earnings 185,000 230,000 270,000 300,000 310,000 1,210,000