Eliminating Entries, Goodwill

Parent company acquires all of the stock of Subsidiary company for $70 million in cash. At the date of acquisition, Subsidiary company current assets had a book value of $30 million, it non- current assets had a book value of $80 million, and its liabilities had a book value of $90 million. It is determined that the book value of Subsidiary Cos net assets approximate fair value at the date of acquisition. Subsidiary shareholders equity consists of capital stock of $2 million, retained earnings of $9 million (credit balance), treasury stock of $2 million.