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On January 2, 2020, Parker Company purchased 100% of the outstanding ordinary shares of Pocket Company for $1,470,000. After the purchase, the statements of financial position of the two companies appeared as follows: Parker Company Pocket Company Assets Land Buildings (net) Equipment Investment in Pocket 's ordinary shares Accounts Receivable Current assets Totals $175,000 $280,000 $525,000 $595,000 $280,000 $105,000 $1,470,000 $35,000 $70,000 $70,000 $70,000 $2,555,000 $1,120,000 Liabilities and Equity Share capital-Parker Share capitalPocket Retained earnings-Parker Retained earnings-Pocket Notes Payable Accounts Payable Totals $1,295,000 $700,000 $840,000 $210,000 $210,000 $105,000 $210,000 $105,000 $2,555,000 $1,120,000 An analysis showed that the fair value of the assets of Pocket Company on January 2, 2020 as follows: Assets Land Buildings (net) Equipment Accounts Receivable Cash Fair value $420,000 $735,000 $280,000 $70,000 $70,000 Required a) Prepare the worksheet for preparing a consolidated statement of financial position on the date of acquisition. You may add accounts to the worksheet that may be necessary. (9 marks) b) Prepare a consolidated statement of financial position for Parker Company and subsidiary on January 2, 2020. (8 marks)

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