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Consolidation at date of acquisition purchase price greater than book value, acquisition journal entries, deferred tax Hability) Assume that the parent company acquires its subsidiary

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Consolidation at date of acquisition purchase price greater than book value, acquisition journal entries, deferred tax Hability) Assume that the parent company acquires its subsidiary by excturer: 112.000 shares of its par valse Common Snick with a market value on the acquisition date of 50 per share for all of the standing voting shares of the levelse. In its analysis of the investee company, the parentales at of the sobidiary assets and Hobbies at an amount equating their book values except for PPE ansees tut are undervalued by st milion, an unrecorded Customer list that the parent valued at $200.000, and an urecorded Brand Name asset valued at 1500,000. Ard, kiraly, assume that the car bases of the subsidiary pre-acquisition identifiable net estets equal their book woes. The parent companys effective tax rates 35 Prepare the only that the parent makes to read the acquisition General Description De Credit 112000 Parent Subsidiary Elimination Entries Dr Cr Consolidated $ Balance Sheet Assets Cash Accounts receivable Inventory Equity investment $783,300 $104,000 384,000 696,000 582,000 894,000 3,360,000 [E] [A] 200000 500000 $ Property, plant and equipment (PPE), net 14,899,600 1,654,000 [A] Customer list [A] Brand name (A) Goodwill [A] $20,008,900 $3,348,000 Liabilities and stockholders' equity Accounts payable $188,100 $127,000 Accrued liabilities 220,800 221,000 Long-term liabilities 2,000,000 1,000,000 Common stock 680,000 200,000 LED APIC 5,200,000 250,000 (E) Retained earnings 11,720,000 1,550,000 (E) $20.008,900 $3,348,000 $ [A] 200000 250000 1550000 $

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