On January 10, 2005, Regina Ltd. acquired 60% of the shares of Dakota Ltd. by issuing common shares valued at $150,000. Prior to the acquisition of Dakota, Regina's balance sheet appeared as shown in Exhibit 5-14. The balance sheet of Dakota Ltd. at the date of acquisition is shown in Exhibit 5-15.

Required:

Prepare a consolidated balance sheet for Regina Ltd., as it would appear immediately following the acquisition of Dakota.

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EXHIBIT E-14 REGINA LTD. Current assets: Cash Accounts and other receivables Inventory Capital assets: Building Accumulated depreciation Equipment Balance Sheet December 31, 2004 Accumulated depreciation Total assets Liabilities: Current accounts payable and accrued liabilities Shareholders' equity: Common shares Retained earnings Total liabilities and shareholders' equity $ 50,000 70,000 80,000 200,000 260,000 (40,000) 175,000 (70,000) 325,000 $525,000 $ 80,000 220,000 225,000 445,000 $525,000