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On Dec 31, 2018, the balance sheets of Paper Inc. and Scissors Inc. were as follows:

	Paper Inc	Scissors Inc
Cash and Short-Term Securities	$400,000	$ 25,000
Inventory	$ 50,000	$ 10,000
Plant and Equipment (net)	$300,000	$120,000
Total Assets	$750,000	$155,000
Current Liabilities	$ 75,000	$ 20,000
Bonds Payable	$100,000	$ 30,000
Common Shares	$150,000	$ 55,000
Retained Earnings	$425,000	$ 50,000
Total Liabilities and Equity	$750,000	$155,000

On that date, the fair values of Scissors's Assets and Liabilities were as follows:

Cash & Short-Term Securities	$ 32,000
Inventory	$ 11,000
Plant and Equipment (net)	$140,000
Current Liabilities	$ 15,000
Bonds Payable	$ 28,000

On Jan 1, 2019, Paper issued 6,000 new common shares with a market value of $42.00 per share as consideration for Scissors's net assets. Prior to the issue, Paper had 10,000 outstanding common shares. Required:

a) Assume Paper paid $252,000 in cash as consideration for Scissors's net assets. Prepare Paper's Balance Sheet immediately following its acquisition of Scissors's net assets.

b) Assume Paper decided to purchase 100% of the voting shares of Scissors Inc. for $252,000 in Cash on Jan 1, 2019.

i. Prepare the journal entry to record Paper's acquisition of Scissors's shares.

ii. Prepare Paper's Consolidated Balance Sheet immediately following its acquisition of Scissors's shares.

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