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Consolidation at the end of the first year subsequent to date of acquisition-Equity method (purchase price equals book value) Assume that a parent company acquires

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Consolidation at the end of the first year subsequent to date of acquisition-Equity method (purchase price equals book value) Assume that a parent company acquires its subsidiary on January 1, 2019, by exchanging 30.000 shares of its $1 par value Common Stock, with a market value on the acquisition date of $20 per share, for all of the outstanding voting shares of the acquiree. You have been charged with preparing the consolidation of these two companies at the end of the first year On the acquisition date, all of the subsidiary's assets and liabilities had fair values equaling their book values. Following are financial statements of the parent and its subsidiary for the year ended December 31, 2019 Parent Subsidiary Parent Subsidiary me met Sabec sheet $3,000,000 $140.000 400.000 960.00 Cash 280.000 100.000 1,400 000 700 recable 400.000 360.000 10.000 Hemory 620.000 4000 (1200,000) 7000 100,000 pty invester $10000 plaid & ment $45.000 1,700.000 $1.500.000 $1.290.000 1000000 100 000 Les and mockholdersquity payable $200,000 160.000 100 HALING 180.000 150.000 A taldes 240.000 $120.000 200.000 Long-Sabiles 600.000 900,000 200.000 Anc 1,400.000 300.000 1240.000 230.000 43.490.000 $3,700.000 Sales Ca of goods Forty mome Net W Gre BOY bidend Ining med sig mane seng Consolidation at the end of the first year subsequent to date of acquisition-Equity method (purchase price equals book value) Assume that a parent company acquires its subsidiary on January 1, 2019, by exchanging 30.000 shares of its $1 par value Common Stock, with a market value on the acquisition date of $20 per share, for all of the outstanding voting shares of the acquiree. You have been charged with preparing the consolidation of these two companies at the end of the first year On the acquisition date, all of the subsidiary's assets and liabilities had fair values equaling their book values. Following are financial statements of the parent and its subsidiary for the year ended December 31, 2019 Parent Subsidiary Parent Subsidiary me met Sabec sheet $3,000,000 $140.000 400.000 960.00 Cash 280.000 100.000 1,400 000 700 recable 400.000 360.000 10.000 Hemory 620.000 4000 (1200,000) 7000 100,000 pty invester $10000 plaid & ment $45.000 1,700.000 $1.500.000 $1.290.000 1000000 100 000 Les and mockholdersquity payable $200,000 160.000 100 HALING 180.000 150.000 A taldes 240.000 $120.000 200.000 Long-Sabiles 600.000 900,000 200.000 Anc 1,400.000 300.000 1240.000 230.000 43.490.000 $3,700.000 Sales Ca of goods Forty mome Net W Gre BOY bidend Ining med sig mane seng

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