Assume that a parent company acquires an 70% interest in its subsidiary for a purchase price of $1,078,000. The excess of the total fair value of the controlling and noncontrolling interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that is worth $100,000 more than its book value, an unrecorded patent that the parent valued at $200,000, and Goodwill of $300,000. There is no control premium, so goodwill is assigned proportionally to the controlling and noncontrolling interests The parent and the subsidiary report the following pre-consolidation balance sheets on the acquisition date Parent Subsidiary $810,000 $330,000 4,000,000 500,000 90,000 700,000 20,000 2,850,000 730,000 Parent Subsidiary Cash Accounts receivable Inventory Equity iinvestment 920,000 $215,000 Current liabilities 782,000 330,000 Lont-term liabilities 1,100,000 425,000 Common stock 1,078,000 920,000 APIC plant, and equipment 5,400,000 Retained earnings (PPE), net 9,280,000 1,770,000T labilities and equity 9,280,000 $1,770,000 Total assets a. Prepare the consolidation entries on the acquisition date. Consolidation Worksheet Debit Credit E] Common stock APIC Equity investment