dy) - 11 AA Aa - 211 Find 1 Normal No Spac... Heading 1 Heading 2 Title abc x, X Amy A. Bc Reply A Select Font Paragraph Styles Editing Problem 3-7 L04 5.6 The balance sheet of Drake Enterprises as at December 31. Year 5. is as follows: Assets $99.000 Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation 143.000 191,400 1,692,000 (900,000) 51 225 400 The balance sheet of Hanson Industries as at December 31, Year 5, as follows: Carrying Amount Farvele Cash $ 55,000 $ 55000 Accounts receivable 275 000 280.500 Inventory 187.000 178.200 Property, plant, and equipment 1,169.000 1017500 Accumulated depreciation (300,000) $15.000 Current labities $ 137,500 137.500 Liability for warranties 99.000 129 800 Common shares 560.000 Retained earnings 419 500 $1.06.202 Liabilities and Equity Current liabilities $ 242.000 Bonds payable Common shares (100,000 shares) Retained earnings 352.000 220.000 411.400 $1 225,4M Effective January 1 Year 6. Drake proposes to sue 32.500 common shares (currently trading at 520 per share) for all of the common shares of Hanson Industries in determining the acquisition price the management of Drake noted that Hanson Industries unrecorded customer service contracts and directed its accounting staff to reflects when recording the acquisition An independent appraiser placed a value of $150,000 on this unrecorded intangible asset Direct costs associated with the acquisition were as follows Costs of issuing shares $ 000 Professional fees 33.500 582509 Hanson Industries is to be wound up after the sale Required (a) Assume that the shareholders of Hanson accept Drake's offer on the proposed date Prepare Drake's January 1 Year 6. consolidated balance sheet The proposed action curred by Assume that Drake is a private enties ASPE, and choose to use the equity method to account for its investment in Manson Prepare Drake's January 1 Year 6. balance sheet after the proposed transaction occurred c) Compare the balance sheets in parts and bi Which balance sheet shows the highest bit to quity ratownich balance sheet borrect Drake' schency? Briefly explain (d) Prepare Drake's consolidated balance sheet at the proposed transaction occurred using the worksheet approach Eh Canada B ich o i dy) - 11 AA Aa - 211 Find 1 Normal No Spac... Heading 1 Heading 2 Title abc x, X Amy A. Bc Reply A Select Font Paragraph Styles Editing Problem 3-7 L04 5.6 The balance sheet of Drake Enterprises as at December 31. Year 5. is as follows: Assets $99.000 Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation 143.000 191,400 1,692,000 (900,000) 51 225 400 The balance sheet of Hanson Industries as at December 31, Year 5, as follows: Carrying Amount Farvele Cash $ 55,000 $ 55000 Accounts receivable 275 000 280.500 Inventory 187.000 178.200 Property, plant, and equipment 1,169.000 1017500 Accumulated depreciation (300,000) $15.000 Current labities $ 137,500 137.500 Liability for warranties 99.000 129 800 Common shares 560.000 Retained earnings 419 500 $1.06.202 Liabilities and Equity Current liabilities $ 242.000 Bonds payable Common shares (100,000 shares) Retained earnings 352.000 220.000 411.400 $1 225,4M Effective January 1 Year 6. Drake proposes to sue 32.500 common shares (currently trading at 520 per share) for all of the common shares of Hanson Industries in determining the acquisition price the management of Drake noted that Hanson Industries unrecorded customer service contracts and directed its accounting staff to reflects when recording the acquisition An independent appraiser placed a value of $150,000 on this unrecorded intangible asset Direct costs associated with the acquisition were as follows Costs of issuing shares $ 000 Professional fees 33.500 582509 Hanson Industries is to be wound up after the sale Required (a) Assume that the shareholders of Hanson accept Drake's offer on the proposed date Prepare Drake's January 1 Year 6. consolidated balance sheet The proposed action curred by Assume that Drake is a private enties ASPE, and choose to use the equity method to account for its investment in Manson Prepare Drake's January 1 Year 6. balance sheet after the proposed transaction occurred c) Compare the balance sheets in parts and bi Which balance sheet shows the highest bit to quity ratownich balance sheet borrect Drake' schency? Briefly explain (d) Prepare Drake's consolidated balance sheet at the proposed transaction occurred using the worksheet approach Eh Canada B ich o