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On December $31,2023,$ Powder Corporation acquired $100\%$ of the common shares of Talc Corporation.

There were no fair value differences or goodwill resulting from this transaction. The following information

$s$ extracts from the December $31,2026$ for Powder and Talc:

Additional information:

On December $31,2024,$ Powder sold a piece of equipment to Talc, recording a profit of $$250,000.$ At that time, the

stimated useful life of the equipment of $10$ years.

In $2025,$ Talc sold $$250,000$ in inventory to Powder. At the end of $2025,$ Powder still held $22\%$ of the inventory. In

$026,$ Talc sold $$300,000$ in inventory to Powder. Powder still held $30\%$ of the inventory at the end of $2026.$ Talc earns

$0\%$ gross profit on all of its inventory sales.

Powder uses the cost method to account for its investment in Talc. Both companies pay tax at a rate of $20\%.$

What is the inventory amount that would be recorded on the December $31,2026,$ consolidated statement of financial

osition?

$$667,000$

$$618,400$

$$661,600$

$$613,000$Wooden Reed Inc. $($WRI$)$ issued $30,000$ voting common shares to acquire all of the assets and liabilities of Creative

Instrument Ltd$.($CIL$).$ On the acquisition date, WRI's shares were trading at $$21\mathrm{.}83$ per share. After the transaction,

CIL owned $20\%$ of WRI's outstanding shares. Below are the statements of financial position of both companies

immediately before the transaction, along with the fair values of CIL's assets and liabilities:

If the consolidated statement of financial position was created immediately after the acquisition, the consolidated

common share account will be:

$$754,900$

$$919,900$

$$265,000$

$$100,000$

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