ADVANCED ACCOUNTING

Plase answer all parts of the problem thoroughly, especially part C. thank you in advance!

PROBLEM 3-2 Consolidated Balance Sheet Workpaper LO 8 LO9 On January 1, 2019, Perry Company purchased 8,000 shares of Soho Company's common stock for $120,000. Immediately after the stock acquisition, the statements of financial position of Perry and Soho appeared as follows: Assets Perry Soho Cash $ 39,000 $ 19,000 Accounts receivable 53,000 31,000 Inventory 42,000 25,000 Investment in Soho Company 120,000 Plant assets 160,000 110,500 Accumulated depreciationplant assets (52,000) (19,500) $362,000 $166,000 Total Liabilities and Owners' Equity Current liabilities $ 18,500 $ 26,000 Mortgage notes payable 40,000 Common stock, $10 par value 120,000 100,000 Other contributed capital 135,000 16.500 Retained earnings 48,500 23,500 Total $362,000 $166,000 Required: A. Calculate the percentage of Soho acquired by Perry Company. Prepare a schedule to com- pute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the pur- chase price relates to subsidiary plant assets. B. Prepare a consolidated balance sheet workpaper as of January 1, 2019. C. Suppose instead that Perry acquired the 8,000 shares for $20 per share including a $5 per share control premium. Prepare a computation and allocation of difference schedule