On January 1, 2017, Franklin Company acquires 80% of the outstanding common stock of LaSalle, for a purchase price of $970,000. It was determined that the fair value of the noncontrolling interest in the subsidiary is $240,000. The book value of the LaSalles stockholders equity on the date of acquisition is $700,000 and its fair value of net assets is $1,100,000. The acquisition-date acquisition accounting premium (AAP) is allocated $250,000 to equipment with a remaining useful life of 10 years, and $150,000 to a patent with a remaining useful life of 6 years.

1. The [A] consolidating journal entry (on Franklins books) to recognize the acquisition date AAP

and allocate the ownership interest in those assets to the parent and noncontrolling interests includes:

A. Equity investment, credit, $510,000

B. Noncontrolling interest, credit, $102,000

C. LaSalles retained earnings, debit, $410,000

D. Noncontrolling interest, credit, $100,000