The balance sheets of LaSalle ltd. and Windsor ltd. on December 30, Year 6, were as follows:

	LaSalle ltd.			Windsor ltd.
Cash and receivables	$	96,450		$	20,400
Inventory		57,900			9,450
Plant assets (net)		229,800			71,400
Intangible assets		24,450			6,900
	$	408,600		$	108,150
Current liabilities	$	63,900		$	30,100
Long-term debt		98,400			45,200
Common shares		154,800			46,600
Retained earnings (deficit)		91,500			(13,750	)
	$	408,600		$	108,150

	LaSalle ltd.			Windsor ltd.
Inventory		57,900			9,450
Cash and receivables	$	96,450		$	20,400
Plant assets (net)		229,800			71,400
Intangible assets		24,450			6,900
	$	408,600		$	108,150
Current liabilities	$	63,900		$	30,100
Long-term debt		98,400			45,200
Common shares		154,800			46,600
Retained earnings (deficit)		91,500			(13,750	)
	$	408,600		$	108,150

On December 31, Year 6, LaSalle ltd. issued 497 shares, with a fair value of $40 each, for 70% of the outstanding shares of Windsor ltd. Costs involved in the acquisition, paid in cash, were as follows:

Costs of arranging the acquisition	$	2,590
Costs of issuing shares		1,780
	$	4,370

The carrying amounts of Windsor ltd.’s net assets were equal to fair values on this date except for the following:

	Fair value
Plant assets	$	65,450
Long-term debt		41,800

LaSalle ltd. was identified as the acquirer in the combination.

Required:

1. Prepare the consolidated balance sheet of LaSalle ltd. on December 31, Year 6, under the identifiable net assets method.

2. Prepare the consolidated balance sheet of LaSalle ltd. on December 31, Year 6, under the fair value enterprise method.

Answer rating: 100% (QA)

Answer Particulars Amount Assets Cash and Receivables 2040000 Inventory 945000 Plant Asset 6... View the full answer