Assume that a parent company acquires a 70% interest in a subsidiary for a purchase price of $1,078,000. The excess of total fair value of controlling and noncontrolling interests over book value is assigned to; a building (PPE net) that is worth $100,000 more than book value, an unrecorded patent valued at $200,000 and goodwill valued at $300,000. Goodwill is assigned proportionately to the controlling and noncontrolling interests.

• Prepare the consolidated balance sheet at the date of acquisition by placing the appropriate entries in their respective debit/credit column cells.
• Indicate, in the blank column cell to the left of the debit and credit column cells if the entry is an [E] or [A] entry.
• Use Excel formulas to derive the Consolidated column amounts and totals.
• Using the "Home" key in Excel, go to the "Styles" area and highlight the [E] and [A] entry cells in different shades.
• Review the grading rubric following this assignment, to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.

1 ACT470-Module 3-Option 1 2 3 4 Cash 5 Accounts receivable 6 Inventory 7 Equity investment 8 9 Property, plant and equipment (PPE), net 10 Patent 11 Goodwill 12 Total assets 13 14 Current liabilities 15 Long-term liabilities 16 Common stock 17 Additional paid-in capital 18 Retained earnings 19 Noncontrolling interest 20 21 Total liabilities and equity 22 23 24 Parent 920,000 782,000 1,100,000 1,078,000 5,400,000 9,280,000 810,000 4,000,000 920,000 700,000 2,850,000 9,280,000 Subsidiary 215,000 330,000 425,000 800,000 1,770,000 330,000 500,000 90,000 120,000 730,000 1,770,000 Consolidation Entries Dr 0 Cr 0 Consolidated 0 0 0 0 0 0 oooooo 0 0 0 0 0 0 0