A parent company acquired a 75% interest in a subsidiary company in Year 4. The acquisition price

Question:

A parent company acquired a 75% interest in a subsidiary company in Year 4. The acquisition price was $1,000,000, made up of cash of $700,000 and the parent’s common shares with a current market value of $300,000. Explain how this acquisition should be reflected in the Year 4 consolidated cash flow statement.