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Keen Inc and Lax Inc Assuming That Keen Inc

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Keen Inc. and Lax Inc. had the following balance sheets on October 31, 2019:
 Keen Inc  Lax Inc  Lax Inc  (carrying value)  (carrying value)  (fair value)  Cash $300,000$80,000$80,000 Accounts Receivable $60,000$24,000$24,000 Inventory $30,000$54,000$50,000 Plant and Equipment (net) $310,000$280,000$300,000 Trademark $12,000$16,000 Total Assets $700,000$450,000 Accounts Payable $150,000$200,000$200,000 Bonds Payable $400,000$120,000$100,000 Common Shares $100,000$60,000 Retained Earnings $50,000$70,000 Total Liabilities and Equity $700,000$450,000\begin{array}{|l|r|r|r|}\hline & \text { Keen Inc } & \text { Lax Inc } & \text { Lax Inc } \\\hline & \text { (carrying value) } & \text { (carrying value) } & \text { (fair value) } \\\hline \text { Cash } & \$ 300,000 & \$ 80,000 & \$ 80,000 \\\hline \text { Accounts Receivable } & \$ 60,000 & \$ 24,000 & \$ 24,000 \\\hline \text { Inventory } & \$ 30,000 & \$ 54,000 & \$ 50,000 \\\hline \text { Plant and Equipment (net) } & \$ 310,000 & \$ 280,000 & \$ 300,000 \\\hline \text { Trademark } & & \$ 12,000 & \$ 16,000 \\\hline \text { Total Assets } & \$ 700,000 & \$ 450,000 \\\hline \text { Accounts Payable } & \$ 150,000 & \$ 200,000 &\$200,000\\\hline \text { Bonds Payable } & \$ 400,000 & \$ 120,000&\$100,000 \\\hline \text { Common Shares } & \$ 100,000 & \$ 60,000 \\\hline \text { Retained Earnings } & \$ 50,000 & \$ 70,000 \\\hline \text { Total Liabilities and Equity } & \$ 700,000 & \$ 450,000 \\\hline\end{array} Assuming that Keen Inc. purchases 100% of Lax Inc. for cash of $200,000 on November 1, 2019, prepare the consolidated balance sheet on the date of acquisition under the Fair Value Enterprise Method.

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Sets Aside

To put something away or to reserve it for a specific purpose or later use.

Acknowledgment Response

A reply or answer given in recognition of receiving something, often used in communication settings to confirm the receipt of a message.

Universally Understood

Refers to concepts, symbols, or messages that are recognized and interpreted the same way by people across different cultures or backgrounds.

Paraphrasing

the action of expressing the meaning of something written or spoken using different words, especially to achieve greater clarity.

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