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PLEASE SHOW CALCULATIONS! THANK YOU On January 2, 2018, Parent Corporation acquired 75% of Subsidiary Company's outstanding common stock. In exchange for Subsidiary's stock, Parent
PLEASE SHOW CALCULATIONS! THANK YOU
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 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 immerliatelve followerine the hileinece ramhination an lanuaro 7 O 1Step by Step Solution
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