Parent Co. purchases the net assets of Subsidiary Co. for $1,000,000 by issuing $1,000,000 worth of its own common shares. Subsidiary Co. Balance Sheet Before Acquisition Carrying Value Current Assets Total Current Assets Long-term Assets Cash Accounts Receivable, net Prepaid Deposits Inventory, net Current Liabilities Patent Vehicles Accumulated depreciation, vehicles Total Long-term Assets Total Assets Accounts payable and accruals Deferred revenue Total Current Liabilities Long-term Liabilities Shareholder loan Bond payable Total Long-term liabilities Equity Common shares Shareholders' Equity Total Equity Total Liabilities and Equity 350,000 80,000 25,000 5,000 50,000 1,000,000 100,000 270,000 10,000 120,000 500,000 100,000 100 719,900 1,080,000 370,000 1,450,000 130,000 600,000 720,000 1,450,000 Fair Value 25,000 5,000 50,000 1,200,000 250,000 250,000 10,000 135,000 500,000 120,000 Column A Subsidiary Co. Balance Sheet After Acquisition Carrying Value ## Required: Check a) Calculate the value of goodwill. b) Record the entry of the acquirer c) Record the entry of the acquiree d) Re-create the balance sheet of the acquiree after acquisition (use Column A) 0 / 2 / 5 / 5 / 3