4 (Consolidation difference at acquisition date) Cheetah Corp. (or holding company) has an investment of $50 million in Zebra Corp (a subsidiary…

4 (Consolidation difference at acquisition date)

Cheetah Corp. (or holding company) has an investment of $50 million in Zebra Corp (a subsidiary located in Africa.

The investment is represented by $75 million of assets, and $25 million of liabilities.

Cheetah Corp. balance sheet is made of the following accounts:

Current assets: $20 million

Investment in Pomian Corp.: $60 million

Share capital: $100 million

Retained earnings: $50 million

L.T. liabilities: $ 35 million

Current liabilities: $15 million

Zebra Corp accounts are as follow:

PPE: $40 million

Current assets: $15 million

Share capital: $40 million

Retained Earnings: $ 10 million

L.T liabilities: $5 million

Task: Prepare the consolidated Statement of Financial Position for the Group composed of Cheetah and its sole subsidiary (Zebra corp.)