Assume that a parent company acquires an 80% interest in its subsidiary for a purchase price of $3,724,800The excess of the total fair value of the controlling and noncontrolling interests over the book value of the subsidiary's StockholdersEquity is assigned to a building (in PPEnet) that the parent believes is worth $300,000 more than its book value, an: unrecorded Patent that the parent valued at \$600,000, and Goodwill of \$900,000 , 80% of which is allocated to the parentThe parent and the subsidiary report the balance sheets on the acquisition date in b. below:

a. prepare the consolidation entries on the aquisition date

b. prepare the consolidation spreadhseet on the acquisition date

Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume that a parent company acquires an 80% interest in its subsidiary for a purchase price of $3,724,800. 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 the parent believes is worth $300,000 more than its book value an: unrecorded Patent that the parent valued at $600,000, and Goodwill of $900,000, 80% of which is allocated to the parent. The parent and the subsidiary report the balance sheets on the acquisition date in b. below: a. Prepare the consolidation entries on the acquisition date. Consolidation Worksheet Description (E) Common stock Debit Credit 0 0 APIC 0 0 0 0 Equity investment 0 0 (A) PPE, net Patent 0 0 0 0 0 0 0 0 Equity investment 0 0 0 0 (E) b. Prepare the consolidation spreadsheet on the acquisition date. Elimination Entries Parent Subsidiary Dr Cr Consolidated Cash $2,762,259 $645,456 0 Accounts receivable 2,177,280 993,888 0 Inventory 3,299,940 1,276,632 0 Equity investment 3,724,800 0 0 (A) Patent [A] 0 0 Goodwill [A] 0 0 PPE, net 15,873,732 2,361,912 (A) 0 0 Total Assets $27,838,011 $5,277,888 0 Current liabilities $2,444,337 $993,888 $ 0 Long-term liabilities 12,000,000 1,428,000 0 Common stock 2,781,135 285,600 LED 0 0 APIC 2,066,715 357,000 (E) 0 0 Noncontrolling interest 0 (E) 0 A Retained earnings 8,545,824 2,213,400 (E) 0 Total Liabilities and Equity $27,838,011 $5,277,888 0 0 0 0