On January 1, 20X6, Big Inc. acquired 100% of the outstanding shares of Small Corp. for $15,000,000 in cash. On this date, Small had shareholders€™ equity of $12,000,000, including $6,000,000 in retained earnings. Small had buildings and equipment that had a fair value of $1,800,000 less than carrying value, inventory that had a fair value of $450,000 greater than carrying value, and investments that had a fair value of $1,950,000 greater than carrying value.
The statements of financial position of the two companies on December 31, 20X6, are shown below.

Additional Information:

1. The goodwill on Small€™s books arose from the purchase of another company several years ago, a company that has since been amalgamated into Small. The goodwill was assumed to have a fair value of zero on January 1, 20X6.

2. Small€™s plant and equipment have an estimated average remaining life of 10 years from January 1, 20X6. The net carrying value of the plant and equipment was $15,000,000 on that date, after deducting $6,000,000 of accumulated depreciation.

3. On January 1, 20X6, Big held inventory of $1,200,000 that had been purchased from Small. Small had sold the merchandise to Big at a 50% gross profit on the sale price.

4. On December 31, 20X6, Big held inventory of $1,500,000 that had been purchased from Small during 20X6 at a 50% gross profit on the sale price.

5. At the end of 20X6, Big owed Small $600,000 for merchandise purchased on account.

6. During 20X6, Small sold an investment for $1,200,000. The investment had cost Small $540,000, and had a fair value of $900,000 on January 1, 20X6.

7. Big€™s retained earnings on December 31, 20X6, include dividend income received from Small. Small declared dividends of $600,000 in 20X6.

Required
Prepare a consolidated statement of financial position for Big Inc. at December 31, 20X6.

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Statements of Financlal Positlon December 31, 20X6 Big $ 3,000,000 Small $ 900,000 Cash Accounts receivable 4,800,000 1,200,000 Inventories 7,200,000 2,100,000 Plant and equipment 63,000,000 21,000,000 Accumulated depreciation (18,000,000) (7,500,000) Goodwill 1,200,000 Long-term investments (cost) 15,000,000 4,800,000 $75,000,000 $ 9,000,000 Total assets $23,700,000 $ 1,500,000 Accounts payable Bonds payable 15,000,000 9,000,000 21,000,000 Common shares 6,000,000 Retained earnings 30,000,000 $75,000,000 7,200,000 $23,700,000