51-403-01 Advanced Accounting Chapter 2 Assignment Fall 2022 On January 2, 2022, Case, Inc. acquired 100% of the voting shares of International Company. Case will maintain International as a wholly-owned subsidiary with its own legal and accounting identity. The consideration transferred to the owners of International was 30,000 shares of newly issued Case stock ($40 market, $10 par). Immediately prior to the acquisition, the following data for both firms were available: Cash Receivables and inventory Property, plant and equipment Trademarks Total assets Accounts payable Common stock, par Additional paid-in capital Retained earnings Total liabilities and equity Case Book Value International Fair Value International $ 150,000 $ 680,000 25,000 180,000 $ 150,000 1,800,000 650,000 750,000 200,000 $ 2,830,000 150,000 300,000 $ (430,000) (800,000) $ 1,005,000 $ (230,000) (250,000) (350,000) (1,250,000) (150,000) (375,000) $(2,830,000) $(1,005,000) Additional Information: International has a research and development project underway which Case believes to have a fair value of $200,000. Case has incurred (but not yet recorded) legal fees of $15,000 and stock issuance costs of $12,000 associated with the acquisition. Required: 1. Prepare the necessary journal entries (show all supporting schedules and calculations) for Case to record the acquisition. 2. Prepare consolidation entries and the consolidation worksheet as of January 2, 2022.