On January 1, Year 1, Green Inc. purchased 100% of the common shares of Mansford Corp. for $335,000. Green€™s balance sheet data on this date just prior to this acquisition were as follows:

The balance sheet and other related data for Mansford are as follows:

Additional Information
€¢ As at January 1, Year 1, the estimated useful lives of the building and equipment were 15 years and 4 years, respectively, and the term to maturity was
10 years for the non-current liabilities.
€¢ There has been no goodwill impairment since the date of acquisition.
€¢ For both companies, the income tax rate is 40%. Deferred income taxes are recognized on the consolidated financial statement pertaining to the temporary differences arising from the acquisition differential.
Required:
(a) Prepare a consolidated balance sheet at January 1, Year 1.
(b) Prepare a schedule of amortization/impairment of the acquisition differential for the period from January 1, Year 1, to December 31, Year 4.

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Book value $340,000 167,200 274,120 325,000 250,000 79,000 $1,435,320 Tax base Cash Accounts receivable Inventory Land Buildings (net) Equipment (net) S 340,000 274,120 325,000 150,000 46,200 $1,135,320 $133,000 120,000 $ 133,000 Current liabilities Deferred tax liability Non-current liabilities Common shares Retained earnings 380,000 802,320 $1,435,320 MANSFORD CORP-BALANCE SHEET at January 1, Year 1 Book value Fair value $ 52,50052,500$ 61,450 134,000 210,000 24,000 16,000 $497,950 Tax base Cash Accounts receivable Inventory Land Buildings (net) Equipment (net) 61,450 110,000 75,000 21,000 17,000 $336,950 52,500 61,450 110,000 75,000 15,000 12,000 $325,950 41,115 155,000 41,115 150,000 4,400 100,000 41,435 $336,950 S 41,115 150,000 Current liabilities Non-current liabilities Deferred tax liability Common shares Retained earnings