Leighton Corp. has just acquired 100% of the voting shares of Knightbridge Inc. and is now preparing the financial data needed to consolidate this new subsidiary. Leighton paid $700,000 for its...

Leighton Corp. has just acquired 100% of the voting shares of Knightbridge Inc. and is now preparing the financial data needed to consolidate this new subsidiary. Leighton paid $700,000 for its investment. Details of all of Knightbridge’s assets and liabilities on acquisition date were as follows: Required: Determine the amounts that will be used to prepare a consolidated statement of financial position on the date of acquisition, assuming that Knightbridge’s tax rate is 45%. Knightbridge has not set up deferred tax amounts for any of its assets or liabilities. View Solution:

Leighton Corp has just acquired 100 of the voting shares