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Ace Corporation acquired Blue Corporation on August 31,2016. Both corporations have fiscal years ending on August 31. Exibit 3.9 shows the SFP for each corporation as of August 31,2016, immediately prior to  the combination , and net income amounts for each corporation for the fiscal year ended August 31,2016. The fair values of the asset and liabilities of the two companies at the date of acquisition. The deferred development costs represent the unamortized balance of the development costs of the companies' leading-edge products. There is no observable market value for this identifiable intangible asset, but Ace expects to fully recover the costs in future years. Before the combination, Ace had 1,200,000 common shares issued and outstanding. Blue had 750,000 common shares issued and outstanding.
Required
Prepare the Ace Corporation post- combination SFP (Statement of Financial position) under each of the following independent situations:
a.    Ace Corporation purchased the assets and assumed the liabilities of Blue corporation by paying $2,000,000 cash and issuing long-term instalment notes payable of  $18,000,000
Pre-combination Statements of Financial Position , August 31,2016
                                  Ace                                        Blue
Cash and cash equivalents $2,350,000                 $1,200,000
Account receivable 2,000,000                       1,800,000
Land  5,000,000                                    ---------
Machinery and equipment(net) 13,500,000            8,400,000
Deferred development costs   600,000                 3,100,000
                            $23,450,000               $14,500,000  
Accounts payable        $650,000                    $1,100,000
Notes payable, long term 2,000,000                   1,000,000
Common shares         15,000,000                    6,950,000
Retained earnings         5,800,000                    5,450,000     
                          $23,450,000               $14,500,000  

Net income, year ended August 31,2016 $2,450,000       $1,300,000
Fair values, August 31,2016
   Ace                                        Blue
Cash and cash equivalents $2,350,000                 $1,200,000
Account receivable 2,000,000                       1,800,000
Land             8,500,000                         ---------
Machinery and equipment(net) 11,000,000            11,000,000
Deferred development costs   750,000                 4,000,000
Accounts payable        (650,000)                    (1,100,000)
Notes payable, long term (2,000,000 )                  (900,000)
Net asset fair value $    21,950,000                 $16,000,000
b.    Ace issued 400,000common shares for all of the outstanding common shares of Blue. The market value of Ace's shares was $50 per share.
c.    Ace purchased 100% of Blue's outstanding common shares from Blue's previous shareholders. As consideration, Ace issued 270,000 common shares and paid $1,000,000 in cash. The market value of Ace's shares was $50 per share.
in IFRS 3 - Business Combinations by

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