To expand its product line, Dorchester Manufacturing Ltd. (Dorchester) purchased 100 percent of the outstanding shares of Hardisty Inc. (Hardisty). Dorchester paid $3,500,000 cash for the shares. The following information was obtained as of the date Hardisty was acquired and was prepared before the purchase occurred:

Required:

Calculate the amounts that would appear on Dorchester's consolidated balance sheet on the date it acquiredHardisty.

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Hardisty (carryingHardisty Hardisty Dorchester amounts)(air values) S 3,250,000 $1,250,000 S1,350,000 9,000,0003,150,000 3,550,000 (carryingHardisty Dorchester amounts) (fair values) S 4,250,000 S1,500,000 $1,900,000 iabilities 16,250,000 5,000,000 6,000,000liabilities Current Current Non-current Shareholders' assets Non-current assets equity 8,250,0002,100,000 Total liabilities and shareholders equity Total assets $20,500,000 $6,500,000 S20,500,000 $6,500,000