Jean and John Inc Had the Following Balance Sheets on August

Essay

Jean and John Inc had the following balance sheets on August 31, 2019:
$\begin{array}{|l|r|r|r|}\hline & \text { Jean Inc. } & \text { John Inc. } & \text { John Inc. } \\\hline & \text { (carryingvalue) } & \text { (carrying value) } & \text { (fair value) } \\\hline \text { Cash } & \$ 1,200,000 & \$ 300,000 & \$ 300,000 \\\hline \text { Accounts Receivable } & \$ 400,000 & \$ 64,000 & \$ 64,000 \\\hline \text { Inventory } & \$ 240,000 & \$ 80,000 & \$ 60,000 \\\hline \text { Plant and Equipment (net) } & \$ 860,000 & \$ 256,000 & \$ 300,000 \\\hline \text { Trademark } & & \$ 20,000 & \$ 36,000 \\\hline \text { Total Assets } & \$ 2,700,000 & \$ 720,000 & \\\hline \text { Accounts Payable } & \$ 1,500,000 & \$ 300,000 & \$ 300,000 \\\hline \text { Bonds Payable } & \$ 600,000 & \$ 240,000 & \$ 210,000 \\\hline \text { Common Shares } & \$ 500,000 & \$ 60,000 \\\hline \text { Retained Earnings } & \$ 100,000 & \$ 120,000 \\\hline \text { Total Liabilities and Equity } & \$ 2,700,000 & \$ 720,000 \\\hline\end{array}$ On August 31, 2019, Jean's date of acquisition, Jean Inc. purchased 90% of John Inc. for cash consideration of $400,000.
Assuming the above balance sheets were prepared immediately before the acquisition, prepare Jean Inc's consolidated balance sheet on the date of acquisition using the Fair Value Enterprise Method.