Consolidation at the date of acquisition (purchase price equals book value). A parent company acquires its subsidiary by exchanging 30,000 shares of its common stock with the fair value on the acquisition date $ 20 per share, for all the outstanding voting shares of the investee.

 

What is the total fair value of the subsidiary on the acquisition date? b. Prepare the consolidation entry or entries on the date of acquisition given the following balance sheets of the parent and subsidiary on the date of acquisition. a. Balance Sheet Parent Subsidiary Assets $ 480,000 $ 271,200 417,600 536,400 Cash.. Accounts receivable. 1,500,000 Inventory Equity investment. Property, plant and equipment (PPE), net 2,300,000 1,200,000 11,150,000 992,400 $16,630,000 $2,217,600 Liabilities and stockholders' equity Accounts payable..... Accrued liabilities.. Long-term liabilities Common stock.... $ 750,000 880,000 3,500,000 1,600,000 3,800,000 6,100,000 $ 152,400 265,200 600,000 120,000 150,000 930,000 APIC... Retained earnings $16,630,000 $2,217,600 Prepare the consolidated balance sheet on the date of acquisition. C.