01/01/2014 Company Big paid 3,000,000 cash for 100% ownership of small. Note that the cash was from 2 sources: 1,000,000 was Big's own cash, 2,000,000 was raised by issuing bonds. On 01/01/2014, Big and Small's balance sheets are as below: Big Consolidated Small MV BV Cash AR Inventory PPE Land Patent Investment Goodwill 5,000,000 6,000,000 5,000,000 5,000,000 4,000,000 5,000,000 0 4,000,000 6,000,000 5,000,000 5,000,000 4,000,000 5,000,000 1,000,000 1,000,000 3,000,000 2,000,000 5,000,000 3,000,000 2,000,000 1,000,000 3,000,000 2,000,000 2,000,000 5,000,000 4,000,000 - 15,000,000 Loan C/S ADPC R/E - 10,000,000 - 1,000,000 -10,000,000 -9,000,000 -10,000,000 - 1,000,000 -10,000,000 -9,000,000 - 15,000,000 -200,000 -200,000 -600,000 Control 0 0 0 2,000,000 01/01/2014 Company Big paid 3,000,000 cash for 100% ownership of small. Note that the cash was from 2 sources: 1,000,000 was Big's own cash, 2,000,000 was raised by issuing bonds. On 01/01/2014, Big and Small's balance sheets are as below: Big Consolidated Small MV BV Cash AR Inventory PPE Land Patent Investment Goodwill 5,000,000 6,000,000 5,000,000 5,000,000 4,000,000 5,000,000 0 4,000,000 6,000,000 5,000,000 5,000,000 4,000,000 5,000,000 1,000,000 1,000,000 3,000,000 2,000,000 5,000,000 3,000,000 2,000,000 1,000,000 3,000,000 2,000,000 2,000,000 5,000,000 4,000,000 - 15,000,000 Loan C/S ADPC R/E - 10,000,000 - 1,000,000 -10,000,000 -9,000,000 -10,000,000 - 1,000,000 -10,000,000 -9,000,000 - 15,000,000 -200,000 -200,000 -600,000 Control 0 0 0 2,000,000