Keen Inc and Lax Inc Assume That the Following Draft Balance Sheet Was Prepared by on October

Keen Inc. and Lax Inc. had the following balance sheets on October 31, 2018: $\begin{array}{|l|l|l|l|}\hline & \text { Keen Inc. } & \text { Lax Inc. } & \text { Lax Inc. } \\\hline & \text { (carry ing value) } & \text { (carrying value) } & \text { (fair value) } \\\hline \text { Cash } & \$ 300,000 & \$ 80,000 & \$ 80,000 \\\hline \text { Accounts Receivable } & \$ 60,000 & \$ 24,000 & \$ 24,000 \\\hline \text { Inventory } & \$ 30,000 & \$ 54,000 & \$ 50,000 \\\hline \text { Plant and Equipment (net) } & \$ 310,000 & \$ 280,000 & \$ 300,000 \\\hline \text { Trademark } & & \$ 12,000 & \$ 16,000 \\\hline \text { Total Assets } & \$ 700,000 & \$ 450,000 & \\\hline & & & \\\hline \text { Accounts Payable } & \$ 150,000 & \$ 200,000 & \$ 200,000 \\\hline \text { Bonds Pay able } & \$ 400,000 & \$ 120,000 & \$ 100,000 \\\hline \text { Common Shares } & \$ 100,000 & \$ 60,000 & \\\hline \text { Retained Earnings } & \$ 50,000 & \$ 70,000 & \\\hline \text { Total Labilities and Equiby } & \$ 700,000 & \$ 450,000 & \\\hline & & & \\\hline\end{array}$
Assume that the following draft balance sheet was prepared by a co-worker subsequent to Keen's 80% purchase of Lax Inc. for $240,000. Assuming this balance sheet is devoid of technical errors, what can be concluded about the balance sheet below?