Blackboard EXO OD HELP CENTER Remaining Time: 56 minutes, 29 seconds Question Completion Status Question 1 7 points On May 1, 2021, Manama Co, acquired all of the voting shares of Sitra Co. by issuing 15,000 shares of $2 par value and 522 fair value each and 54,000 in stock imance costs. Manama and Sitra reported the following account balances Assume that it's building was undervalued by 518,200 and equipment was overvalued by S10.2011 Partial Consolidated Worksheet Sheet Account Manama Sitra Consolidation antries Debit Credit Current assets $342.200 $78,300 Investment in Sitra Co. ? 0 Building 631,500 209,000 Equipment 34,700 307.000 Goodwill 0 Total assets 51,338.400 $594 300 Liabilities (438, 400) (334,300) Common stock (100,000) (50,000) Additional paid in capital (200,000) 0 Retained earnings (600.000) (210.000) Total liabilities and equity 51.338.400 5594 300 Required: (7 Points) 1. Prepare the journal entry to record Manama investment in Sitra Co (please leave a line between entries) 2. Prepare consolidation entries 'S' and 'A' that are necessary to complete the worksheet. (please leave a line between entries) 3. Explain why a subsidiary's revenues and expenses are not consolidated on date of acquisition Furthalhar What is the primary accounting difference between accounting for when the subsidiary is dissolved and when the subsidiary retains its incorporation If the subsidiary retains its incorporation, the parent will use the investment account. OB. If the subsidiary retains its incorporation, assets and liabilities are consolidated at their book values oc. If the subsidiary is dissolved, assets and liabilities are consolidated at their book values. OD. If the subsidiary retains its incorporation, there will be no goodwill associated with the acquisition