7. Rangers, Inc. acquires all of the outstanding common stock of Slowly Industries for $450,000 cash. On the acquisition date, the subsidiary had Common Stock of $40,000 and Retained Earnings of $160,000. A patent unrecorded by Slowly was valued at $158,000. Required: a. Prepare the entry on Ranger's books to record the purchase. b. Prepare all necessary consolidation entries. 8. On January 2, 2020, Kuehler Corporation's stockholders' equity accounts were as follows: Common Stock, $1 par $100,000 Additional paid-in-capital 350,000 Retained Earnings 225,000 Kuehler's assets and liabilities had book values equal to fair values except for inventory, land and building which were undervalued by $50,000, $75,000, and $40,000, respectively. On January 2, 2020, Davis Corp. purchased all of Kuehler's common stock for $900,000 cash. There was no contingent consideration in the agreement to combine. Required: Prepare all necessary consolidation entries for a January 2, 2020 balance sheet 10. On January 1, 2020, Parrots & Parties Company purchased all of the common stock of Sunshine Company for $850,000 cash. On that date, Sunshine had common stock of $60,000, additional paid-in capital of $360,000, and retained earnings of $300,000. The difference between the cost of the purchase and the book value of Sunshine's net assets was at least partly due to under or overvalued assets and liabilities. Inventory was undervalued by $10,000. Land was undervalued by $70,000. Buildings and Equipment were undervalued by $18,000. Bonds Payable was overvalued by $15,000. Any unexplained difference is due to Goodwill. Required: Prepare all necessary entries for a January 1, 2020, consolidated balance sheet WIU. January 2, 2020 balance sheet. 9. On January 2, 2020, Space Co. issued 150,000 new shares of its $1 par value common stock valued at $16 a share for all of Evolution, Inc.'s outstanding common shares. The fair value and book value of Evolution' identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2020 is as follows: Space Evolution Cash $400,000 $150,000 Inventories 400,000 440,000 Other current assets 550,000 350,000 Land 350,000 540,000 Property, plant & equipment 4,200,000 3,000,000 Total Assets $5,900,000 $4,480,000 Accounts payable $750,000 $350,000 Notes payable 850,000 1,150,000 Common stock, $1 par 1,500,000 1,000,000 Additional paid-in capital 750,000 350,000 Retained earnings 2,050,000 1,630,000 Total Liabilities & Equities $5,900,000 $4,480,000 Required: Prepare a consolidated balance sheet for Space Co. immediately after the business 8. On January 2, 2020, Kuehler Corporation's stockholders' equity accounts were as follows: Common Stock, $1 par $100,000 Additional paid-in-capital 350,000 Retained Earnings 225,000 Kuehler's assets and liabilities had book values equal to fair values except for inventory, land and building which were undervalued by $50,000, $75,000, and $40,000, respectively. On January 2, 2020, Davis Corp. purchased all of Kuehler's common stock for $900,000 cash. There was no contingent consideration in the agreement to combine. Required: Prepare all necessary consolidation entries for a January 2, 2020 balance sheet