On January 2, 2018, Parent Corporation acquired 75% of Subsidiary Company's outstanding common stock. In exchange for Subsidiary's stock, Parent issued bonds payable with a par value of $500,000 and fair value of $510,000 directly to the selling stockholders of Subsidiary. At that date, the fair value of the noncontrolling interest was $170,000. The two companies continued to operate as separate entities subsequent to the combination Immediately prior to the combination the book value and fair value of the companies' assets and liabilities were as follows: Also, at the date of combination, Subsidiary owed Parent $6,000 plus accrued interest of $500 on a short-term note. Both companies have properly recorded these amounts Parent Corporation Subsidiary Corporation Book Value Fair Value Book Value Fair Value Cash $ 12,000 $ 12,000 $ 9,000 $ 9,000 Receivables 41,000 39,000 31,000 30,000 Allowance for Bad Debts (2,000) (1,000) Inventory 86,000 onnnn 68,000 72,000 Conditional Formatting land 55,000 200,000 50,000 70,000 Buildings & Equipment 960,000 650,000 670,000 500,000 Accumulated Depreciation (411,000) (220,000) Patent 40,000 ! Total Assets $ 741,000 $ 990,000 $ 607,000 $ 721,000 Current Payables $ 38,000 $ 38,000 $ 29,000 $ 29,000! Bonds Payable 200,000 210,000 100,000 100,000 Common Stock 300,000 200,000 Additional Paid-in-Capital 100,000 130,000 Retained Earnings 103,000 148,000 Total Liabilities & Equity $ 741,000 $ 607,000 1) Record the business combination on the books of Parent Corporation. 2) Show and label the calculation of the total Differential. Put a box around the final answer. 3) Show and label the calculation of the total Goodwill (if any). Put a box around the final answer. 4) Record the consolidation entries (eliminating) needed in a worksheet to prepare a Consolidated Balance Sheet immediately following the business combination on January 2, 2018. 5) Prepare a Consolidated Balance Sheet Worksheet as of January 2, 2018, immediately following the business combination. Consolidation Entries Date Accounts Parent Corporation Subsidiary Corporation Debit Credit Cash $ 12,000 $ 9,000 Receivables 41,000 31,000 Allowance for Bad Debts (2,000) (1,000) Inventory 86,000 68,000 land 55,000 50,000 Buildings & Equipment 960,000 670,000 Accumulated Depreciation (411,000) (220,000) Investment in Subsidiary 510,000 Patent Goodwill Total Assets $ 1,251,000 $ 607,000 Current Payables $ Bonds Payable 38,000 $ 700,000 29,000 100,000 Bonds Premium 10,000 Common Stock 300,000 200,000 Additional Paid-in-Capital 100,000 130,000 Retained Earnings 103,000 148,000 NCI in Net Assets of Subsidiary Total Liabilities & Equity 1,251,000 $ 607,000 Debit Credit Consolidated