ACCT414-514-EI-FALL2022--updated.doc [Compatibility Mode] - Word References Mailings Review View Help A Aa Tell me what you want to do A E Paragraph AaBbCcl AaBbC AaBbCcl AaBbCc] A Emphasis Heading 1 Normal Strong Styles account titles like net assets, current assets, tangible assets, or owner's equity and (2) do not combine numeric data. The TECH HONOR CODE applies to this exam. Please do not consult with anyone but the Instructor. However, this exam is open notes/Moodle. NOTE: You may use the back of any page for "scratch work." However, "scratch work" is not graded. Inconsistencies in information provided by you on the front of a page will result in points being deducted for that part of the exam. Please put your name on each page if you submit each page individually. Format and submission instructions are found elsewhere on Moodle. NOTE: This exam consists of six independent parts one part per page (pp. 1-6). Generally speaking, "point values" are assigned to individual parts in proportion to the information included in the correct answer for a particular part. NOTE: Pre-Acquisition data common to all parts is presented immediately below. Book Fair Book Value Value Value Trial Balance Accounts Parent Subsidiary Subsidiary Cash $6,000,000 $800,000 $800,000 Accounts Receivable 5,000,000 700,000 700,000 Plant Assets, net 4,000,000 750,000 600,000 Accounts Payable 4,000,000 850,000 850,000 Bonds Payable 5,000,000 950,000 950,000 Common Stock 3,000,000 450,000* 100,000 Additional Paid-In Capital 2,000,000 N/A 150,000 Retained Earnings 1,000,000 N/A 50,000 *This amount represents the total/net fair value of Subsidiary (a.k.a.. FMV-S). THUS use this amount when calculating Goodwill or Bargain Purchase Gain. PART 4: Assume that Parent paid $600,000 cash for all of Subsidiary's outstanding common stock. Also, assume the pre-acquisition data provided on page one. REQUIRED: Record the journal entry or entries required on Subsidiary's books assuming Subsidiary is not dissolved. (If no entry is required, indicate NO ENTRY REQUIRED.)