Question 4: (10 points) A1, B1, C1, C3

On September 30, 2017, AL Manama Corporation paid $550,000 to acquire 72% of the outstanding common stock of Ahlia Company which became a subsidiary. Differences between current fair values and carrying amounts of identifiable net assets of Ahlia Company on September 30, 2017, were limited to the following:

Current Fair Values

Carrying Amounts

Inventories

$ 5,000

$ 20,000

building (net)

260,000

140,000

Instructions:

1. Prepare the journal entry to record the investment on September 30, 2017 (4 marks)

Question 4: (10 points) A1, B1, C1, C3 On September 30, 2017, AL Manama Corporation paid $550,000 to acquire 72% of the outstanding common stock of Ahlia Company which became a subsidiary. Differences between current fair values and carrying amounts of identifiable net assets of Ahlia Company on September 30, 2017, were limited to the following: Current Fair Values Carrying Amounts Inventories $ 5,000 $ 20,000 building (net) 260,000 140,000 Instructions: 1. Prepare the journal entry to record the investment on September 30, 2017 (4 marks)