Liu Limited purchased all the outstanding ordinary shares of Yang Plastics on December 31, 2020. Just before the purchase, the condensed statements of financial position of the two companies appeared as follows (amounts in thousands).

Liu used current assets of ¥1,218,000 to acquire the shares of Yang Plastics. The excess of this purchase price over the book value of Yang Plastics’ net assets is determined to be attributable ¥84,000 to Yang Plastics’ plant and equipment and the remainder to goodwill.

Instructions
a. Prepare the entry for Liu Limited’s acquisition of Yang Plastics shares.
b. Prepare a consolidated worksheet at December 31, 2020.
c. Prepare a consolidated statement of financial position at December 31, 2020.

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Yang Plastics ¥ 676,000 Liu Limited Plant and equipment (net) Current assets ¥2,100,000 1,480,000 435,500 ¥3,580,000 ¥1,111,500 Share capital-ordinary Retained earnings Current liabilities ¥1,950,000 ¥ 525,000 494,000 1,052,000 578,000 92,500 ¥3,580,000 ¥1,111,500