assume the parent company acquires its subsidiary by exchanging 50000 shares of its $1 par value common stock, with a fair value on the acquisition date of $30 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 among equaling their book values except for an unrecorded trademark with a fair value of $120,000, an unrecorded video library valued at $300,000 and patented technology with a fair value of $60,000.

a. prepare the journal entry that the parent makes to record the acquisition.

b. given the following acquisition-date balance sheets of the parent and the subsidiary, prepare the consolidation entries.

Balance sheet	parent	subsidiary
assets
cash	$250,000	$120,000
A/R	200,000	300,000
inventory	300,000	400,000
equity investment	1,500,000
PPE	2,000,000	800,000
	4,250,000	1,620,000
liabilities and stockholders equity
A/P	$200,000	$80,000
Accrued liabilities	250,000	140,000
long term liabilities	1,800,000	500,000
common stock	400,000	100,000
APIC	600,000	200,000
Retained earnings	1,00,000	600,000
	4,250,000	1,620,000

c. prepare the consolidation spreadsheet

d. where were the intangible assets on the parent or subsidiary's balance sheets?