On May 1, 2013, Peat Co. purchased all of Sorbet Ltd.'s issued common shares for $630,000. At the acquisition date, Sorbet's financial statements included the following balances:
Share capital...........................................$400,000
Retained earnings....................................210,000
Goodwill...................................................10,000
At the acquisition date, Sorbet's identifiable assets and liabilities were equal to their fair values, except in the case of inventory that had a book value of $80,000 and a fair value of $86,000, and equipment that had a book value of $360,000 and a fair value of $370,000. The equipment was originally purchased for $480,000. At the acquisition date, the equipment had a remaining useful life of 5 years and was amortized using the straight-line method. All the inventory that Sorbet had on hand at the acquisition date was sold by October 2013. Sorbet's goodwill has not shown indications of impairment. Both Peat and Sorbet have April 30th year-ends and did not have any intercompany sales with each other.

Required:
Prepare Peat's consolidated financial statements for April 30, 2015. Ignore income taxes.

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The financial statements for Peat and Sorbet at April 30, 2015 Statement of Financial Position April 30, 2015 Sorbet Ltd. Peat Co. Assets: Current assets: $ 52,000 $ 161,600 Cash Accounts receivable 100,000 80,000 Inventory 120,000 170,000 Total Current assets 272,000 411,600 Non-current assets: Equipment, net 558,000 368,000 Furniture and fixtures, net 51,000 51,600 Investment in Sorbet Ltd. 630,000 Goodwill 10,000 Total non-current 1,239,000 429,600 S 841,200 Total assets S1,511,000 Liabilities and shareholders' equity: Current liabilities: Accounts payable $ 69,000 $ 19,600 Non-current liabilities: Loan payable 22,000 32,000 Total liabilities 91,000 51,600 Shareholders' equity: Share capital 1,000,000 400,000 Retained eamings 420,000 389,600 Total equity 1,420,000 789,600 Total liabilities and shareholders' equity $1,511,000 $ 841,200