Telecom Inc has decided to purchase the shares of Intron Inc. for $300,000 in cash on July 1, 2022. On the date, the balance sheets of each of these companies were as follows:

	Telecom Inc	Intron Inc
Cash and short-term securities	$920,000	$200,000
Inventory	150,000	20,000
Plant and equipment (net)	330,000	180,000
Total assets	$1,400,000	$400,000
Current liabilities	$420,000	$90,000
Bonds payable	700,000	200,000
Common shares	180,000	60,000
Retained earnings	100,000	50,000
Total liabilities and equity	$1,400,000	$400,000

 On that date, the fair values of Intron's assets and liabilities were as follows:

 

 

Cash and short-term securities	$200,000
Inventory	$15,000
Plant and equipment (net)	$400,000
Current liabilities	$90,000
Bonds payable	$210,000

Required:

1) Prepare the consolidated balance sheet on date of acquisition.

Answer rating: 100% (QA)

Consolidated Balance Sheet of Telecom Inc and Intron Inc as of July 1 2022 ... View the full answer