Consolidation at date of acquisition (purchase price greater than book value, acquisition journal entries Assume that the parent company acquires its subsidiary by exchanging 84,000 shares of its $2 par value Common Stock, with a fair value on the acquisition date of $44 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiarys assets and liabilities at an amount equaling their book values except for an unrecorded Trademark with a fair value of $240,000, an unrecorded Video Library valued at $600,000, and Patented Technology with a fair value of $125,000. What is the Goodwill?

b. Given the following acquisition-date balance sheets of the parent and the subsidiary, prepare the consolidation entries Balance Sheet Parent Subsidiary Assets Cash $514,020 $255,160 Accounts receivable 450.300 633.360 Inventory 650,000 13.540 Equity investment 3.696.000 Property, plant equipment 10.GUD, DOU 2.105, 140 $15.911,320 $3,317,200 I labilities and storkholders' equity Accounts payable Accrurd abilities Long-term abilities Cornman stock $150,480 5177.800 176,640 309,400 3.840.000 910.000 428,400 32,000 3.780,000 427500 7,534,800 110,500 $15.910.320 $3.817.200 Aric Retained varnings Credit Consolidation Journal Description Debit [EJ Common stock 282.000 APIC 477,500 Hetained earrings 1610.500 Equity Investment [A] Trademark 240.000 video library 600,000 Patented technoloRY 125.000 Goodwill . 3.528.000 x Equity investment 0