Consolidation of an International Subsidiary at Date of Acquisition Fairview Corporation, a U.S. company, has a wholly-owned subsidiary in Mexico. The subsidiary's functional currency is the Mexican peso, and translation to U.S. dollars is appropriate. The subsidiary was acquired for P360,000,000. The balance sheet of the subsidiary on the date of acquisition is as follows: Mexican Subsidiary Balance Sheet at Date of Acquisition Assets Cash and receivables P15,000,000 Inventories 35,000,000 Noncurrent assets, net 75,000,000 Total assets P125,000,000 Liabilities and Shareholders' equity Liabilities P25,000,000 Capital stock 80,000,000 Retained earnings 20,000,000 Total liabilities and shareholders' equity P125,000,000 The fair value of the subsidiary's inventories is P20,000,000, and the fair value of the subsidiary's noncurrent assets is P40,000,000. The subsidiary has previously unreported identifiable intangible assets valued at P10,000,000. All other amounts are reported at approximate fair value. The exchange rate at the date of acquisition is $0.05/peso. Required Present a schedule showing the calculation of goodwill for the acquisition, in U.S. dollars, and the entries (E) and (R) necessary to consolidate the balance sheets of Fairview and its subsidiary at the date of acquisition. Instructions: Enter all your answers below in thousands. For example, P360,000,000 equals P360,000 in thousands. Do not use negative signs with any of your answers below. $/P U.S.$ 0 0 $ 0 0 0 0 Calculation of goodwill (in thousands) P Price Paid P Book value Acquisition cost in excess of book value Overvaluation of inventories Overvaluation of noncurrent assets Unreported identifiable intangible assets Goodwill P 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 Enter numerical answers in thousands. ConsolidationJournal Description Debit (E) Credit 0 0 Retained earnings 0 0 0 0 0 0 (R) Identifiable intangible assets Goodwill Inventories Noncurrent Assets 0 0 0 0 0 0 0 0