On December 31, Year 2, Blue purchased a percentage of the outstanding ordinary shares of Joy. On this date all but two categories of Joy’s identifiable assets and liabilities had fair values equal to carrying amounts.

Following are the statements of financial position of Blue Ltd. and Joy Corp. on December 31, Year 2, subsequent to the acquisition.

Below is the consolidated statement of financial position for Blue at December 31, Year 2.

Required:

(a) From the information provided, determine the percentage of Joy’s ordinary shares purchased by Blue on December 31, Year 2.

Percentage of Blue’s ownership %

(b-1) Which of Joy’s assets, liabilities or equity items had fair values that were not equal to their carrying amounts at acquisition? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

• Long-term debtunanswered
• Goodwillunanswered
• Plant and equipmentunanswered
• Ordinary sharesunanswered
• Retained earningsunanswered
• Inventoryunanswered
• Cashunanswered
• Bonds

(b-2) Calculate the fair value of each of the assets, liabilities, or equity items whose fair values were not equal to their carrying amounts at December 31, Year 2.

(a)

From the information provided, determine the percentage of Joy's ordinary shares purchased by Blue on December 31, Year 2.

(b)

Which of Joy's assets or liabilities had fair values that were not equal to their carrying amounts at acquisition? Calculate the fair value of each of these assets at December 31, Year 2.