A A Q AaBbCcDd AaBb AaBbCc AaBbC AAA EX The balance sheets of (XYZ) Co. and (ABC) Co. on June 29, Year 2, were as follows: (XYZ) (ABC) Cash and receivables $ 94,300 $ 20,700 Inventory 61, 150 8,800 Plant assets (net) 204,300 60,700 Intangible assets 33,650 7,600 $393,400 $ 97,800 Current liabilities $ 66,800 $ 28,250 Long-term debt 94,900 41,400 Common shares 141,150 40,700 Retained earnings (deficit) 90,550(12,550) $393,400 $ 97,800 On June 30, Year 2, (XYZ) Co. purchased 90% of the outstanding shares of (ABC) Co. for $63,900 cash. Legal fees involved with the acquisition were an additional $2,950. These two transactions were the only transactions on this date. The carrying amounts of (ABC)'s net assets were equal to fair value except for the following: Fair Value Inventory $ 10,700 Plant assets 71,400 Intangible assets 11,400 Long-term debt 34,450 (ABC) has a five-year agreement to supply goods to Bardier. Both (XYZ) and (ABC) believe that Bardier will renew the agreement at the end of the current contract. The agreement is between (ABC) and Bardier; it cannot be transferred to another company without (ABC)'s consent. (ABC) does not report any value with respect to this contract on its balance sheet. However, an independent appraiser feels that this contract is worth $22,350. Required: (a) Assume that (XYZ) Co. is a public entity. Prepare the consolidated balance sheet of (XYZ) Co. on June 30, Year 2. (15 marks) (b) Assume that (XYZ) is a private entity, uses ASPE, and chooses to use the equity method to account for its investment in (ABC). Prepare (XYZ)'s June 30, Year 2, separate-entity balance sheet after the business combination. (10 marks) FM: 1299 MacBook Air