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Parent Inc Assuming That Parent Inc Acquires 80% of Sub Inc on on July

question 52

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Parent Inc. and Sub Inc. had the following balance sheets on July 31, 2019:  Parent Inc  Sub Inc  Sub Inc  (caryying value)   (carrying  value)   (fair value)   Cash $180,000$36,000$36,000 Accounts Receivable $100,000$40,000$40,000 Inventory $60,000$24,000$27,000 Plant and Equipment (net)  $200,000$80,000$93,000 Goodwill $$8,000 Trademark $$12,000$15,000 Total Assets $540,000$200,000 Current Liabilities $80,000$50,000$50,000 Bonds Payable $320,000$20,000$24,000 Common Shares $90,000$80,000 Retained Earnings $50,000$50,000 Total Liabilities and Equity $540,000$200,000\begin{array}{|l|r|r|r|}\hline & \text { Parent Inc } & \text { Sub Inc } & \text { Sub Inc } \\\hline & \text { (caryying value) } & \begin{array}{r}\text { (carrying } \\\text { value) }\end{array} & \text { (fair value) } \\\hline \text { Cash } & \$ 180,000 & \$ 36,000 & \$ 36,000 \\\hline \text { Accounts Receivable } & \$ 100,000 & \$ 40,000 & \$ 40,000 \\\hline \text { Inventory } & \$ 60,000 & \$ 24,000 & \$ 27,000 \\\hline \text { Plant and Equipment (net) } & \$ 200,000 & \$ 80,000 & \$ 93,000 \\\hline \text { Goodwill } & \$- & \$ 8,000 & \\\hline \text { Trademark } & \$- & \$ 12,000 & \$ 15,000 \\\hline \text { Total Assets } & \$ \mathbf{5 4 0 , 0 0 0} & \$ 200,000 & \\\hline \text { Current Liabilities } & \$ 80,000 & \$ 50,000 & \$ 50,000 \\\hline \text { Bonds Payable } & \$ 320,000 & \$ 20,000 & \$ 24,000 \\\hline \text { Common Shares } & \$ 90,000 & \$ 80,000 \\\hline \text { Retained Earnings } & \$ 50,000 & \$ 50,000 \\\hline \text { Total Liabilities and Equity } & \$ 540,000 & \$ 200,000 \\\hline\end{array} Assuming that Parent Inc acquires 80% of Sub Inc on August 1, 2019 for cash of $180,000, the assets section of Parent's consolidated balance sheet on the date of acquisition would total what amount if the proportionate consolidation method were used?


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