45. Consolidation at date of acquisition (purchase price equals book value) A parent company acquires its subsidiary by exchanging 40,000 shares of its Common Stock, with a mar- ket value on the acquisition date of $25 per share, for all of the outstanding voting shares of the investee. a. What is the total fair value of the subsidiary on the acquisition date? b. Prepare the consolidation entry or entries on the date of acquisition given the following balance sheets of the parent and subsidiary on the date of acquisition. Parent Subsidiary Balance Sheet Assets Cash.. Accounts receivable. Inventory Equity investment.. Property, plant and equipment (PPE), net $ 405,000 $ 226,000 1,280,000 348,000 1,940,000 447,000 1,000,000 9,332,000 827,000 $13,957,000 $1,848,000 Liabilities and stockholders' equity Accounts payable. Accrued liabilities Long-term liabilities Common stock. APIC.. Retained earnings $ 627,000 736,000 3,000,000 1,370,000 3,200,000 5,024,000 $13,957,000 $ 127,000 221,000 500,000 100,000 125,000 775,000 $1,848,000 c. Prepare the consolidated balance sheet on the date of acquisition