Question $3[25$ marks$]$

Part A

Merida Inc. purchases a $90\%$ interest in the common stock of Cosumel Corporation on January $1,2016,$ for an agreed priced of $$495,000.$ Merida Inc. Issues $$400,000$ of bonds to Cosumel shareholders plus $$95,000$ cash as a payment. Cosume's balance sheet on the acquisition date is as follows:

$\backslash$table$[[$Assets$,$Liabilities and Equity$],[$Cash$,$$$60,000,$Accounts payable,$$45,000$