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On January 1, Year 5, FLA Company issued 6,300 ordinary shares to purchase 9,000 ordinary...

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Accounting

On January 1, Year 5, FLA Company issued 6,300 ordinary shares to purchase 9,000 ordinary shares of MES Company. Prior to the acquisition, FLA had 180,000 and MES had 10,000 ordinary shares outstanding, which were trading at $5 and $3 per share, respectively. The following information has been assembled for these two companies just prior to the acquisition:
FLA Company MES Company
Carrying
Amount Fair Value Carrying
Amount Fair Value
Plant assets $ 60,000 $ 70,000 $ 20,000 $ 25,000
Current assets 40,00047,50010,00011,200
$ 100,000 $ 30,000
Ordinary shares $ 30,000 $ 10,000
Retained earnings 35,00012,500
Long-term debt 15,00019,0002,5003,200
Current liabilities 20,00020,0005,0005,000
$ 100,000 $ 30,000
________________________________________
Required:
(a) Prepare a consolidated statement of financial position for FLA Company and its nonwholly owned subsidiary at January 1, Year 5, under each of the following:
(i) Identifiable net assets method
(ii) Fair value enterprise method
b) This part of the question is not part of your Connect assignment.

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