7. On 1 July 2020, P Company acquired 80 percent voting com 000. The fair value of net assets of S Company S600,000 in common stock and $300.000 in retained earnings. Any value of the purchase price and book value of S Company net assets is at or gain on acquisition. ompany acquired 80 percent voting common stock in s Company for $800 C of net assets of S Company on the same date was $900,000 comprising in retained earnings. Any difference between implied value of S Company net assets is attributable to goodwill What is the appropriate workpaper elimination entry for this investment? 800 000 100 000 Dr Investment in S Company stock Goodwill Cr Common stock - S Cr Retained earnings - S 600 000 300 000 Investment in S Company stock Cr Cash 800,000 800,000 Common stock - S 600 000 Retained earnings - S 300 000 Gain on acquisition 100 000 Cr Investment in S Company stock 800 000 C G d. Dr Dr Dr Common stock - S 600,000 Retained earnings-S 300,000 Goodwill 100,000 C Investment in Company stock 800,000 Cr Noncontrolling interest (NCT) 200,000 Common stock -S 480 000 Retained earnings - S 240 000 Goodwill 80 000 Cr Investment in S Company stock 800 000 e. Dr Dr 8) Consolidated net income for a parent company and its partially owned subsidiary is best defined as the parent company's: a) recorded net income. b) recorded net income plus the subsidiary's recorded net income. c) recorded net income plus the its share of the subsidiary's recorded net income. d) income from independent operations plus parent's share of subsidiary's income resulting from transactions with outside parties. e) income from independent operations plus subsidiary's income resulting from transactions with outside parties minus parent's share of dividends from the subsidiary