Pristine Ltd. purchased 100% of the voting shares of Serene Ltd. for $1,500,000 on October 1, 20X6. The SFP of Serene Ltd. at that date was as follows:

Required
Provide the eliminations and adjustments required at the date of acquisition that are necessary to prepare the consolidated SFP of Pristine Ltd. on Oct. 1, 20X6.

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Serene Ltd. Statement of Financial Position October 1, 20X6 Fair value Net carrying value $ 330,000 Cash $330,000 Receivables 390,000 350,000 580,000 770,000 Inventory 900,000 Capital assets (net) 200,000,ו $2,500,000 $ 350,000 Current liabilities 380,000 Long-term liability 690,000 690,000 Common shares 360,000 Retained earnings 1,100,000 $2,500,000