MS 45.) Consolidation at date of acquisition (purchase price equals book value) A parent company acquires its subsidiary by exchanging 50,000 shares of its Common Stock, with ad value on the acquisition date of $24 per share, for all of the outstanding voting shares of the investee, What is the total fair value of the subsidiary on the acquisition date? a. b. Prepare the consolidation entry or entries on the date of acquisition given the following balance sheets of the parent and subsidiary on the date of acquisition. Parent Subsidiary Balance Sheet Assets s 480,000 271.200 417,600 536,400 .. 1.500.0 40 Invent ory 1,200,000 992,400 Property, plant and equipment (PPE), net 11,150,000 $16,630,000 $2,217,600 Liabilities and stockholders' equity . 750,000 S 152,400 880,000 265.200 3,500,000 600,000 Long-term liabilities . 120,000 930,000 $16,630,000 $2,217,600 1,600,000 50,000 Retained earnings. 6,100,000 c. Prepare the consolidated balance sheet on the date of acquisition