QUESTION 3 Not complete Marked out of 59.00 P Flag question Consolidation at date of acquisition (purchase price greater than book value, acquisition journal entries Assume that the parent company acquires its subsidiary by exchanging 84,000 shares of its $2 par value Common Stock, with a fair value on the acquisition date of $39 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary's assets and liabilities at an amount equaling their book values except for an unrecorded Trademark with a fair value of $240,000, an unrecorded Video Library valued at $600,000, and Patented Technology with a fair value of $125,000. a. Prepare the journal entry that the parent makes to record the acquisition. General Journal Description Debit Credit Common stock b. Given the following acquisition-date balance sheets of the parent and the subsidiary, prepare the consolidation entries. Balance Sheet Parent Subsidiary Assets Cash Accounts receivable Inventory Equity investment Property, plant & equipment 450,300 650,000 3,276,000 $514,020 $265,160 633,360 813,540 10,600,000 1655,140 $15,490,320 3,367,200 Liabilities and stockholders' equity Accounts payable Accrued liabilities Long-term liabilities Common stock APIC Retained earnings $150,480 $177,800 309,400 910,000 428,400 232,000 277,500 7,534,800 1,460,500 $15,490,320 3,367,200 176,640 3,840,000 3,360,000