ANSWER ALL PARTS RELATED TO THE PROBLEM!!!! SOLVE A,B,C TO SOLVE THE ENTIRE PROBLEM!!!!

Consolidation at date of acquisition (purchase price equals book value) A parent company acquires its subsidiary by exchanging 35,000 shares of its Common Stock, with a market value on the acquisition date of $25 per share, for all of the outstanding voting shares of the investee. a. What is the total fair value of the subsidiary on the acquisition date? $ 875,000 b. Given the balance sheets of the parent and subsidiary in c. below, prepare the consolidation entry or entries on the date of acquisition. Consolidation Worksheet Description Debit Credit [E] Common stock 100,000 0 APIC 125,000 Retained earnings 650,000 0 Equity investment 0 875,000 0 c. Prepare the consolidated balance sheet on the date of acquisition. Elimination Entries Balance Sheet Parent Subsidiary Dr Cr Consolidated Assets Cash $405,000 $226,000 $ 631,000 Accounts receivable 1,280,000 348,000 1,628,000 Inventory 1,940,000 447,000 2,387,000 Equity investment 875,000 0 875,000 0 Property, plant and equipment (PPE), net 9,332,000 702,000 10,034,000 $13,832,000 $1,723,000 $ 15,555,000 Liabilities and stockholders' equity Accounts payable $627,000 $127,000 $ 754,000 Accrued liabilities 736,000 221,000 957,000 Long-term liabilities 3,000,000 500,000 3,500,000 Common stock 1,370,000 100,000 100,000 0 1,470,000 APIC 3,075,000 125,000 125,000 0 3,200,000 Retained earnings 5,024,000 650,000 650,000 0 5,674,000 $13,832,000 $1,723,000 875,000 875,000 $ 15,555,000