1. Compute the fair value of Slay as of the acquisition date, to be used in purchase price allocation

2. Compute consolidated investment in Slay

3. Give the entry or entries needed in consolidation as of the acquisition date( entries s and A)

On January 1, Play borrowed $60 and used the money to buy 80% of Slay. The fair value of the noncontrolling interest was $15. The 60 debt is payable in 10 installments, with the first one within the next 12 months. After the above transactions, condensed balance sheet information for the two companies is: Play Slay 70 20 60 90 40 Current assets Investment in Slay Noncurrent assets Total Current liabilities Long-term debt Stockholder's equity 220 60 36 10 104 0 80 50 Total 220 60 The excess of the fair value of Slay at acquisition over the book value of equity was allocated to inventory (60%) and to goodwill (the remaining 40%)