10-The difference of vehicles according to parent company method adopted will be: A B $40000 Dr. $ 60000 Dr. C $28000 Dr. D $ 40000 Cr. Second question: Grade On Jan 1, 2015 D Corporation was formed with a total capital of 2 million Dollars. D Corporation paid $ 500000 to own the full common stock of A corporation, and other of-pocket money paid is $ 12000 commission. Also D Corporation paid $ 180000 to own the full common stock of B corporation, and other of-pocket money paid is $ 8000 commission. The Financial Position statement of the two corporations before consolidation was as follows: Cash A/R Inventory Machines Vehicles Total Assets A/P Common Stock Paid-in Capital Retained Earnings Total Equity & Liabilities A (A) Fair B (B) Fair Value Corporation Value Corporation 200000 200000 50000 50000 120000 130000 20000 18000 180000 200000 60000 75000 100000 80000 40000 38000 160000 125000 30000 25000 760000 735000 200000 206000 310000 300000 50000 30000 300000 100000 100000 30000 50000 20000 760000 200000 The corporation adopted the Purchase Method Instructions: 1. Compute cost of investment 2. Write the entries needed 3. Prepare the opening combined financial position statement for D Corporation