Consolidation at date of acquisition (purchase price greater than book value, acquisition journalentries)Assume that the parent company acquires its subsidiary by exchanging 70,000 shares of its $1 par valueCommon Stock, with a market value on the acquisition date of $30 per share, for all of the outstandingvoting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary?sassets and liabilities at an amount equaling their book values except for an unrecorded Trademarkthat the parent values at $200,000, an unrecorded Video Library valued at 500,000, and Patented Technologythat the parent values at $100,000.

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

b. Prepare the consolidation entries.

c. Given the following acquisition-date balance sheets of the parent and the subsidiary, prepare theconsolidation spreadsheet:

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