I already figured out the B-1 question, but I don't know how to prepare the Starbucks T-Account for Investment in Dunkin -showing all the postings for January 1, 2020.

On January 1, 2020, Starbucks acquired 100% of Dunkin's outstanding common stock for $1,000,000 ($1 million) in cash. As of January 1, 2020, the following fair values were determined. Dunkin's Buildings had a FV in excess of BV of $150,000 Dunkin's Equipment had a FV in excess of BV of $40,000 Dunkin had an unrecorded Patent with a FMV $10,000 For all other Dunkin Accounts as of Jan 1, 2020, all other GAAP book values equaled fair values. Here is the Balance Sheet information on the date of acquisition (January 1, 2020) All balances are Normal Balances January 1, 2020 Cash A/R Investment on Dunkin Equipment Building Total Assets Accounts Payable Loans Total Liabilities Common Stock APIC Retained Earnings Total Liab + Equity Starbuck $100,000 300,000 842,000 258,000 900,000 $2,600,000 (200,000) (400,000 $600,000 100,000 300,000 1,600,000 $2.600.000 Dunkin $100,000 200,000 N/A 200,000 400,000 $900,000 (50,000) (150,000) $200,000 100,000 200,000 400,000 $900,000 B.ASSUME Starbucks acquired 100% of Dunkin and both companies remained separate legal entities after the acquisition. 1) Prepare all Consolidation Journal Entries as of the date of acquisition, January 1, 2020 Debit Credit 2) Prepare the Starbucks T-Account for Investment in Dunkin - showing all the postings for January 1, 2020 B. In Case where Dunkin is 100% acquired by Startbucks by "purchase method" the journal entries in the books od Starbucks will be as follows: Particulars Amount(DR) Amount(CR) Business Purchase A/c Dr 1000000 To Starbucks 1000000 (Being Business of Dunkin Ltd Acquired By Starbucks Building Dr 550000 Equipment Dr 240000 Cash Dr 100000 Accounts Receivables Dr 200000 Patents Dr 10000 Goodwill Dr 100000 To Business Purchase A/C 1000000 To Accounts Payable 50000 To Loans 150000 (Being Assets and liabilities taken over by company, debiting difference to goodwill) Starbucks Dr 1000000 To Bank (or cash) 1000000 (Being Payment of acquisition consideration made in cash)