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The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows:

	E Ltd.			J Ltd.
Cash and receivables	$	96,050		$	19,600
Inventory		57,100			9,050
Plant assets (net)		228,200			70,600
Intangible assets		24,050			6,100
	$	405,400		$	105,350
Current liabilities	$	63,100		$	30,100
Long-term debt		97,600			45,200
Common shares		153,200			46,600
Retained earnings (deficit)		91,500			(16,550)
	$	405,400		$	105,350

On December 31, Year 6, E Ltd. issued 350 shares, with a fair value of $39 each, for 70% of the outstanding shares of J Ltd. Costs involved in the acquisition, paid in cash, were as follows:

Costs of arranging the acquisition	$	2,510
Costs of issuing shares		1,620
	$	4,130

The carrying amounts of J Ltd.s net assets were equal to fair values on this date except for the following:

	Fair value
Plant assets	$	65,050
Long-term debt		40,200

E Ltd. was identified as the acquirer in the combination.

(a)	Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the parent company extension theory.

(b)	Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the entity theory.

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