To expand its market penetration in the retail clothing market, Balmoral Designs Ltd. (Balmoral) purchased 100 percent of the out standing shares of Chipman Fine Clothiers Inc. (Chipman). Balmoral...

To expand its market penetration in the retail clothing market, Balmoral Designs Ltd. (Balmoral) purchased 100 percent of the out standing shares of Chipman Fine Clothiers Inc. (Chipman). Balmoral paid $4,200,000 cash for the shares and its management determined that at the time of acquisition the fair value of Chipman’s identifiable assets and liabilities was $2,400,000. The following information was obtained as of the date Chipman was acquired and was prepared before the purchase occurred:Required:Calculate the amounts that would appear on Balmoral’s consolidated balance sheet on the date it acquiredChipman.

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To expand its market penetration in the retail clothing market