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Exercise 5-6 (Static) Majority-Owned Subsidiary Acquired at Higher than Book Value LO 5-2 Professor Corporation acquired 70 percent of Scholar Corporation's common stock on December

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Exercise 5-6 (Static) Majority-Owned Subsidiary Acquired at Higher than Book Value LO 5-2 Professor Corporation acquired 70 percent of Scholar Corporation's common stock on December 31, 20X4, for $102,200, The fair value of the noncontrolling interest at that date was determined to be $43,800. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: At the date of the business combination, the book values of Scholar's assets and liabilities approximated fair value except for inventory, which had a fair value of $81,000, ond buildings and equipment, which had a fair value of $185,000. At December 31,204. Professor reported accounts payable of \$12,500 to Scholat, which reported an equal amount in its accounts receivable. Required: a. Record the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Note: If no entry is required for a transaction/event, select "No journal entry requ Record the basic consolidation entry. Record the excess value (differential) reclassification entry. Record the entry to eliminate the intercompany accounts. Record the optional accumulated depreciation consolidation entry. Credit Note : = journal entry has been entered b. Prepare a consolidated balance sheet worksheet. Note: Values in the first two columns (the "parent" and "subsidiary" balances) the a minus sign, while all values in the "Consolidation Entries" columns should be multiple adjusting entries are required, combine all debit entries into one amoun the worksheet. Similarly, combine all credit entries into one amount and enter thi

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