If you could please solve question 40 part a and b

fies as a business combination and Company A is the the identifiable net assets (and goodwill, if any) assuming the transaction qualifies as and Company B is the accounting acquirer. Does it matter which company is the accounting acquirer? Consolidation entries at date of acquisition (purchase price greater than book A parent company exchanges 12,000 shares of its $2 par value common stock, with a fair value d S9/share, for all of the shares owned by the subsidiary's shareholders. On the acquisition date sidiary reported $30,000 of contributed capital (i.e., common stock) and $45,000 of Retained Earn An examination of the subsidiary's balance sheet revealed that book values were equal to fair v all assets except for PPE (net), which has a book value of $40,000 and a fair value of $73,000 a. Prepare the entry that the parent makes to record the investment. b. Prepare the [E] and [A] consolidation entries a business value) 39. 40. Consolidation entries at date of acquisition (purchase price greater than book value) L03 A parent company acquires all of the outstanding common stock of its subsidiary for cash purchase price of $265,000. On the acquisition date, the subsidiary reported $60,000 for Common Stock and $45,000 for Retained Earnings. An examination of the subsidiary's balance sheet revealed that book values were to fair values for all assets, except for an unrecorded patent, which the parent values at $95,000 a. Prepare the entry that the parent makes to record the investment. b. Prepare the [E] and [A] consolidation entries 41. Composition of equity investment account Several years ago, a parent company acquired LO3 all of the outstanding common stock of its subsidiary urchase price of $275,000. On the acquisition date, this purchase price was $68,000 more than the ubsidiary's book value of Stockholders'Equity. The AAP was entirely attributable to Goodwill. On the date of acquisition, the parent company management believes that the g life. Since the date of acquisition, the subsidiary has reported cumulative net income of $234,000 oodwill only has a 10-year and paid $97,000 of dividends to its parent company a. Compute the balance of the Equity Investment account on the parent's balance sheet assuming t the Goodwill asset has not declined in value subsequent to the date of acquisition, Briefly describe the nature of the assets that comprise the Equity Investment Preparation of [A] entry from acquisition footnote b. 42