Jean Inc and John Inc Had the Following Balance Sheets

question 39

Essay

Jean Inc and John Inc had the following balance sheets on August 31, 2018: $\begin{array}{|l|l|l|l|}\hline & \text { Jean Inc. } & \text { John Inc. } & \text { John Inc. } \\\hline & \text { (carry ing value) } & \text { (carrying value) } & \text { (fair value) } \\\hline \text { Cash } & \$ 1,200,000 & \$ 300,000 & \$ 300,000 \\\hline \text { Accounts Receivable } & \$ 400,000 & \$ 64,000 & \$ 64,000 \\\hline \text { Inventory } & \$ 240,000 & \$ 80,000 & \$ 60,000 \\\hline \text { Plant and Equipment (net) } & \$ 860,000 & \$ 256,000 & \$ 300,000 \\\hline \text { Trademark } & & \$ 20,000 & \$ 36,000 \\\hline \text { Total Assets } & \$ 2,700,000 & \$ 720,000 & \\\hline & & & \\\hline \text { Accounts Payable } & \$ 1,500,000 & \$ 300,000 & \$ 300,000 \\\hline \text { Bonds Pay able } & \$ 600,000 & \$ 240,000 & \$ 210,000 \\\hline \text { Common Shares } & \$ 500,000 & \$ 60,000 & \\\hline \text { Retained Earnings } & \$ 100,000 & \$ 120,000 & \\\hline \text { Total Labilities and Equiby } & \$ 2,700,000 & \$ 720,000 & \\\hline & & & \\\hline\end{array}$
On August 31^, 2018, Jean's date of acquisition, Jean Inc. purchased 90% of John Inc. for $400,000.
Prepare Jean Inc's consolidated balance sheet on the date of acquisition using the Proprietary Theory.

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Definitions:

Personality Disorder

A mental condition defined by long-lasting dysfunctional patterns of thought, behavior, and personal feeling, noticeable in multiple environments.

Special Treatment

Giving preferential behavior or privileges to an individual or group over others, often in a context where equal treatment is expected.

Interpersonal Relationships

Connections and associations between two or more people that can vary in duration and significance.

Narcissistic

Characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.