Assume that the parent company acquires its subsidiary by exchanging $110,000$ shares of its Common Stock, with a Assume that the parent company acquires its subsidiary by exchanging $110,000$ shares of its Common Stock, with a

market value on the acquisition date of $$40$ per share, for all of the outstanding voting shares of the investee. In its

analysis of the investee company, the parent values all of the subsidiary's assets and liabilities at an amount equaling

their book values except for a building that it feels is undervalued by $$1,000,000,$ an unrecorded License Agreement

that the parent values at $$500,000,$ and an unrecorded Customer List owned by the subsidiary that the parent values

at $$200,000.$ Any further discrepancy between the purchase price and the book value of the subsidiary's Stockholders'

Equity is attributed to expected synergies to be realized by the consolidated company as a result of the acquisition.

a$.$ Given the following acquisition$-$date balance sheets of the parent and subsidiary, at what amounts will each of the

following be reported on the consolidated balance sheet?

b$.$ What intangible assets will be reported on the consolidated balance sheet and at what amounts?

market value on the acquisition date of $$40$ per share, for all of the outstanding voting shares of the investee. In its

analysis of the investee company, the parent values all of the subsidiary's assets and liabilities at an amount equaling

their book values except for a building that it feels is undervalued by $$1,000,000,$ an unrecorded License Agreement

that the parent values at $$500,000,$ and an unrecorded Customer List owned by the subsidiary that the parent values

at $$200,000.$ Any further discrepancy between the purchase price and the book value of the subsidiary's Stockholders'

Equity is attributed to expected synergies to be realized by the consolidated company as a result of the acquisition.

a$.$ Given the following acquisition$-$date balance sheets of the parent and subsidiary, at what amounts will each of the

following be reported on the consolidated balance sheet?

b$.$ What intangible assets will be reported on the consolidated balance sheet and at what amounts?