Introduction lo 04 1 62. Consolidation at date of acquisition (purchase price greater than book value, acquisition journal Assume the parent company acquires its subsidiary by exchanging 50,000 shares of its $1 par value Common Stock with a fair value on the acquisition date of $30 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsid- iary's assets and liabilities at an amount equaling their book values except for an unrecorded Trademark with a fair value of $120.000, an unrecorded Video Library valued at $300,000, and Patented Technol- ogy with a fair value of $60,000. Prepare the journal entry that the parent makes to record the acquisition b. Given the following acquisition-date balance sheets of the parent and the subsidiary, prepare the consolidation entries. a. Prepare the consolidation spreadsheet. Where were the intangible assets on the parent or subsidiary's balance sheets? 6.3. Banent. c. d. HH4E-CH2-P62 Data Consolidation Entries Dr Cr Parent Subsidiary Consolidated Assets: - Cash Accounts receivable Inventory 3. Equity investment 250,000 200,000 300,000 1,500,000 120,000 300,000 400,000 4,000,000 800,000 6,250,000 1,620,000 o Property, plant and equipment (PPE), net 1 Trademark 2 Video Library 13 Patented Technology 4 Goodwill 15 16 Liabilities and stockholders' equity: 17 Accounts payable 18. Accrued liabilities 19 Long-term liabilities 20 Common stock 21 APIC 22 Retained earnings 23 24 200,000 250,000 1,800,000 400,000 2,600,000 1,000,000 6,250,000 80,000 140,000 500,000 100,000 200,000 600,000 1.620,000