Question 3: Relates to Chapter 4 - Consolidations of Non-Wholly-Owned Subsidiaries At Acquisition

On December 31, Year 1, P Company purchased 80% of outstanding shares of S Company for $7,900 cash with these statements provided immediately after acquisition transaction.
		P Company		S Company
		Carrying Amount		Carrying Amount	Fair Value
Plant and equipment (net)		$ 9,600		$ 8,300	$ 7,000
Investment in S Company		$ 7,900		$ -
Inventory		$ 6,660		$ 5,300	$ 5,500
Accounts receivable		$ 6,150		$ 3,300	$ 3,300
Cash		$ 4,500		$ 2,550	$ 2,550
Total assets		$ 34,810		$ 19,450
Ordinary shares		$ 12,000		$ 4,500
Retained earnings		$ 15,410		$ 5,950
Long-term liabilities		$ 4,500		$ 3,500	$ 3,500
Other current liabilities		$ 1,500		$ 3,300	$ 3,300
Accounts payable		$ 1,400		$ 2,200	$ 2,200
Total liabilities and equity		$ 34,810		$ 19,450

Required:

	1) Prepare a consolidated statement of financial position at the date of acquisition under the identifiable net asset (INA) method (often times referred to as the Parent Company Extension Theory)
	2) Prepare a consolidated statement of financial position at the date of acquisition under the fair value enterprise (FVE) method (often times referred to as the Entity Theory) NOTE: In both cases make sure you prepare a schedule to calculate the acquisition differential, including the calculation of goodwill and NCI at acquisition.