MBC X LO1 49. Consolidation on date of acquisition-Noncontrolling interest and AAP Cash... Accounts receivable. Inventory.. Assume a parent company acquires a 75% interest in its subsidiary for a purchase price of $1,097,250. The excess of the total fair value of the controlling and noncontrolling interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that is worth $104,500 more than its book value, an unrecorded patent with a fair value of $171,000, and Goodwill of $294,500. There is no control premium, so goodwill is assigned proportionally to the controlling and noncontrolling interests. The parent and the subsidiary report the following pre-consolidation balance sheets on the acquisi- tion date: Equity investment. Property, plant, and equipment, net. Total assets.. Parent $ 855,000 742,900 1,045,000 1,097,250 3,800,000 $7,540,150 Subsidiary $ 190,000 313,500 403,750 760,000 $1,667,250 Current liabilities.. Long-term liabilities Common stock.. Additional paid-in capital.. Retained earnings Total liabilities and equity... a. Prepare the consolidation entries on the acquisition date. b. Prepare the consolidation spreadsheet on the acquisition date. Parent $760,000 2,850,000 855,000 665,000 2,410,150 $7,540,150 Subsidiary $299,250 475,000 85,500 114,000 693,500 $1,667,250

49. Consolidation on date of acquisition-Noncontrolling interest and AAP Assume a parent company acquires a 75% interest in its subsidiary for a purchase price of $1,097,250. The excess of the total fair value of the controlling and noncontrolling interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that is worth $104,500 more than its book value, an unrecorded patent with a fair value of $171,000, and Goodwill of $294,500. There is no control premium, so goodwill is assigned proportionally to the controlling and noncontrolling interests. The parent and the subsidiary report the following pre-consolidation balance sheets on the acquisition date: a. Prepare the consolidation entries on the acquisition date. b. Prepare the consolidation spreadsheet on the acquisition date