Assume Starbucks acquired 100% of Dunkin and both companies remained separate legal entities after the acquisition.

-->Prepare all consolidation journal entries as of the date of acquisition, Jan 1 2020.

Consolidation Problem On January 1 2020, Starbucks acquired 100% of Dunkin's outstanding common stock for $1,000,000 in cash. As of January 1 2020, the following fair values where determined. Dunkin's Buildings had a FV in excess of BV of $150,000 Dunkin's Equipment had a FV in excess of BV of $40,000 Dunkin had an unrecorded patent with a FMV of $10,000 For all other Dunkin Accounts as of Jan 1, 2020, all other GAAP book values equaled fair values. Here is the balance sheet information on the date of acquisition (Jan 1 2020) All balances are normal balances Jan 1 2020 Starbucks Dunkin Donuts Cash 100,000 100,000 A/R 300,000 200,000 Investment in Dunkin 842,000 N/A Equipment 258,000 200,000 Building 900,000 400,000 Total Assets 2,600,000 900,000 Accounts Payable (200,000) (50,000) Loans (400,000) (150,000) Total Liabilities 600,000 200,000 Common Stock 100,000 100,000 APIC 300,000 200,000 Retained Earnings 1,600,000 400,000 Total Liabilities and Equity 2,600,000 900,000