Book Fair Book Value Value Value Trial Balance Accounts Parent Subsidiary Subsidiary Cash $6,000,000 $800,000 $800,000 Accounts Receivable 5,000,000 700,000 700,000 Plant Assets, net Accounts Payable 4,000,000 750,000 600,000 4,000,000 850,000 850,000 Bonds Payable 5,000,000 950,000 950,000 Common Stock 3,000,000 450,000* 100,000 Additional Paid-In Capital 2,000,000 N/A 150,000 Retained Earnings 1,000,000 N/A 50,000 *This amount represents the total/net fair value of Subsidiary (a.k.a., FMV-S). THUS use this amount when calculating Goodwill or Bargain Purchase Gain. PART 1: Assume that Subsidiary is not dissolved and assume that Parent paid $655,000 cash for all of Subsidiary's outstanding common stock. REQUIRED: Circle the best answer below with respect to the journal entry required on Subsidiary's books, if applicable. A. SUBSIDIARY'S BOOKS ARE "PERMANENTLY" CLOSED B. NO ENTRY REQUIRED ON SUBSIDIARY'S BOOKS.