Consolidation at date of acquisition (purchase price equals book value) A parent company acquires its subsidiary by exchanging 45,000 shares of its Common Stock, with a market value on the acquisition date of $25 per share, for all of the outstanding voting shares of the investee. a. What is the total fair value of the subsidiary on the acquisition date? $ 0 b. Given the balance sheets of the parent and subsidiary in c. below, prepare the consolidation entry or entries on the date of acquisition. Consolidation Worksheet Description Debit Credit [E] Common stock APIC ription Consolidated c. Prepare the consolidated balance sheet on the date of acquisition. Elimination Entries Balance Sheet Parent Subsidiary Dr Assets Cash $405,000 $226,000 Accounts receivable 1,280,000 348,000 Inventory 1,940,000 447,000 Equity investment 1,125,000 Property, plant and equipment (PPE), net 9,332,000 952,000 $14,082,000 $1,973,000 Liabilities and stockholders' equity Accounts payable $627,000 $127,000 Accrued liabilities 736,000 221,000 Long-term liabilities 3,000,000 500,000 Common stock 1,370,000 100,000 0 APIC 3,325,000 125,000 0 Retained earnings 5,024,000 900,000 $14,082,000 $1,973,000 0 0 0 0 $ 0 Please answer all parts of the