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Keen Inc and Lax Inc On November 1, 2019, Keen Acquired 80% of Lax 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} On November 1, 2019, Keen acquired 80% of Lax Inc. for cash consideration of $240,000. Assume that the following draft balance sheet was prepared by a co-worker on the date of acquisition. Assuming this balance sheet is devoid of technical errors, what can be concluded about the balance sheet below?

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The act of following orders, rules, or requests, adhering to regulations or standards.

Routine Inquiry

A standard or typical request for information regarding a product, service, or procedure, usually in a business context.

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A broad and non-specific assertion or declaration that applies to many situations or instances.

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The primary goal or purpose of an activity, project, or mission.

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