On January 1 2017 the balance sheets of Potter Co. and Hogwarts Co. were as follows:
		Potter		Hogwarts
cash		1,000,000		50,000
equipment		1,000,000		100,000
a/d equip		100,000		10,000
Land		2,000,000		20,000
building		3,000,000		100,000
a/d building		1,000,000		30,000
patent		50,000		50,000
total assets		5,950,000		280,000
accounts payable		1,000,000		40,000
notes payable		1,000,000		40,000
common stock $5 par		3,000,000		150,000
apic c/s		100,000		0
r/e		850,000		50,000
On January 2nd Potter acquired 80% of the stock of Hogwarts by issuing 50,000 shares of common stock when the stock was
selling for $11 per share. At that time the fair market value of Hogwarts assets were:
	equipment	60,000
	Land	30,000
	building	110,000
	patent	40,000
REQUIRED:
	A) MAKE THE JOURNAL ENTRY POTTER MAKES WHEN IT ISSUES THE STOCK TO ACQUIRE HOGWARTS
	B) MAKE THE JOURNAL ENTRY HOGWARTS MAKES WHEN POTTER ISSUES THE STOCK TO ACQUIRE HOGWARTS
	C) MAKE ANY NECESSARY WORKSHEET ENTRIES
	D) PREPARE A CONSOLIDATED BALANCE SHEET ON 1/2/2017
	BONUS 2 PTS NO PARTIAL CREDIT: WHAT WOULD BE THE AMOUNT OF GOODWILL IF POTTER WAS DOING ITS BOOKS UNDER IFRS?