Parch Ltd. purchased 100% of the voting shares of Subbet Ltd. for $ 1,400,000 on October 1, 20X6. The SFP of Subbet Ltd. at that date was:

Required

What are the eliminations and adjustments required at the date of acquisition that would be necessary to consolidate the financial statements of Subbet Ltd. with those of Parch Ltd.?

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Subbet Ltd. Statement of Financial Position October 1, 20X6 Net Carrying value Fair value 300,000 370,000 750,000 920,000 300,000 410,000 560,000 1,220,000 $2,490,000 340,000 700,000 400,000 1,050,000 $2,490,000 Cash Receivables Inventory Capital assets, net 370,000 700,000 Current liabilities Long-term liability Common shares Retained eamings