On January 1, 2015, Parent Company acquired 100% of the outstanding ordinary shares of Sub Company by issuing 20,000 ordinary shares. On the date of acquisition, Parent company shares were actively trading at $45. Immediately before acquisition, the two companies had the following book values and fair values: Parent Sub Book value Fair value Book value Fair value Assets $4,000,000$4,600,000$1,000.000$1,200,000 Liabilities Ordinary shares Retained earnings $1,400,000 $1,330,000 $400,000 90,000 510,000 $440,000 800,000 1,800,000 $4,000,000 $ 1,000,000 What amount would Parent Company report for total assets on its consolidated balance sheet immediately after acquisition? a. $5,000,000 b. $5,200,000 11. c. $5,340,000 (5,200,000+ 140,000 goodwill) d. $5,800,000 What amount would Parent Company report for ordinary shares on its consolidated balance sheet immediately after acquisition? 12. a. $800,000 b. $890,000 c. $%1,700,000 d. $1,790,000 TRU Open Learning