The balance sheets of Rodriguez Ltd. and Vancouver Co. on December 31, Year 2, just before the transaction described below, were as follows: 

On December 31, Year 2, Rodriguez purchased 100% of Vancouver’s common shares for $230,000 in cash. Coincidentally, the carrying amounts of Vancouver’s assets and liabilities were equal to fair value. 

Required 

(a) Prepare the journal entries, if any, for Rodriguez Ltd. and for Vancouver Co. to record this transaction. 

(b) Prepare balance sheets for Rodriguez Ltd. and for Vancouver Co. at December 31, Year 2, after recording the transaction noted above. 

(c) Prepare a consolidated balance sheet for Rodriquez Ltd. after the transaction noted above.

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Cash and receivables Inventory Property and equipment (net) Current liabilities Long-term debt Common shares Retained earnings Rodriguez $301,000 105,000 160,000 $566,000 $ 96,000 175,000 100,000 195,000 $566,000 Vancouver $ 55,000 140,000 270,000 $465,000 $110,000 125,000 150,000 80,000 $465,000