1. On 1/1/2020, ABC Corporation balance sheet included the following accounts: Patents $100,000, Bonds Payable $40,000, Common Stock $10,000, Retained Earnings $50,000. Book values of assets and liabilities were equal to their fair values. XYZ Corporation acquired 100% of the common stock of ABC Corporation on 1/1/2020 for $120,000 Cash. Which of the following entries was prepared to record the acquisition on XYZ's books?

Patents

Bonds Payable

Cash

Investment in Subsidiary

Goodwill

Gain on Acquisition of Business

2.

Which of the following entries is NOT required to consolidate the financial statements on the date of acquisition?

a. Elimination of the parent's share of the subsidiarys equity and the investment in subsidiary account

b. All of these entries are required to consolidate the financial statements on the date of acquisition.

c. Amortization of the excess of fair value over book value of the subsidiary's assets and liabilities

d. Distribution of the excess of fair value over book value of the subsidiary's assets and liabilities