Parent Company Balance Sheet

Assets, Liabilities & Equities Cash AR Inventory Land Plant and Equipment Less: Accumulated Depreciation Total Assets AP Common Stock Additional Paid In Capital Retained Earnings Total Liabilities & Equity

Book Value $250,000 $30,000 $150,000 $100,000 $600,000 -$150,000 $980,000 $20,000 $100,000 $560,000 $300,000 $980,000

Sub Company Balance Sheet

Assets, Liabilities & Equities Cash AR Inventory Land Plant and Equipment Less: Accumulated Depreciation Goodwill Total Assets AP Common Stock Additional Paid In Capital Retained Earnings Total Liabilities & Equity

Book Value $40,000 $15,000 $105,000 $60,000 $400,000 -$150,000 $10,000 $480,000 $50,000 $100,000 $60,000 $270,000 $480,000

Fair Value $40,000 $10,000 $200,000 $100,000 $300,000 $650,000 $50,000

If the 100% stock acquisition of Sub Company by Parent Company was a bargain purchase, which of the following accounts are most likely to appear in a related journal entry? A.) Goodwill B.) Gain C.) Bargain Purchase D.)None of the above