Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume that a parent company acquires an 80% interest in its subsidiary for a purchase price of $3,724,800. The excess of the total fair value of the controlling and noncontrolling interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that the parent believes is worth $100,000 more than its book value, an: unrecorded Patent that the parent valued at $200,000, and Goodwill of $300,000, 80% of which is allocated to the parent. The parent and the subsidiary report the balance sheets on the acquisition date in b. below: a. Prepare the consolidation entries on the acquisition date. Consolidation Worksheet Description [E] Common stock APIC Retained earnings Equity investment Noncontrolling interest [A] PPE, net Patent Goodwill Equity investment Noncontrolling interest Debit Credit 95200 119000 737800 1,241,600 b. Prepare the consolidation spreadsheet on the acquisition date. Elimination Entries Parent Subsidiary Dr Cr Consolidated Cash $920,753 $215,152 $ Accounts receivable Inventory Equity investment 725,760 331,296 1,099,980 425,544 1,241,600 Patent [E] [A] [A]