LO4 X 61. Determining ending balances of accounts on the consolidated balance sheet Assume the parent company acquires its subsidiary by exchanging 80,000 shares of its Common Stock, with a fair value on the acquisition date of $24 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 subsidiary's assets and li- abilities at an amount equaling their book values except for a building that is undervalued by S400,000. an unrecorded License Agreement with a fair value of $200,000, and an unrecorded Customer List owned by the subsidiary with a fair value of $100.000. Any further discrepancy between the purchase price and the book value of the subsidiary's Stockholders' Equity is attributed to expected synergies to be realized by the consolidated company as a result of the acquisition. Given the following acquisition-date balance sheets of the pgrent and subsidiary, at what amounts will each of the following be reported on the consolidated balance sheet? 1. Accounts Receivable 5. Common Stock 2. Equity Investment 6. APIC 3. PPE, net 7. Retained Earnings 4. Goodwill a. Balance Sheet Parent Subsidiary Assets Cash Accounts receivable Inventory ..... Equity investment Property, plant and equipment (PPE), net $ 200,000 400,000 500,000 $ 700,000 300,000 450,000 1,920,000 1,500,000 4,870,000 900,000 $2,000,000 Liabilities and stockholders' equity Accounts payable Accrued liabilities Long-term liabilities Common stock $ 150,000 180,000 1,000,000 140,000 2,000,000 1,400,000 $4,870,000 $ 100,000 200,000 550,000 100.000 150,000 900.000 $2.000.000 APIC Retained earnings b. What intangible assets will be reported on the consolidated balance sheet and at what amounts? Where were these assets on the parent or subsidiary's balance sheets