TEST 3 On January 1, 2020, Parent Company issued 10,000 shares of its own $10 par value common stock for an exchange of 9,000 outstanding stocks of Subsidiary Company in an acquisition. Parent's common stock at January 1, 2020 was selling at $70 per share. Just before the business combination, Parent and Subsidiary balance sheet information were as follows: Parent Subsidiary Subsidiary Book Value Book Value Fair Value Cash $25,000 $12,000 $12,000 Inventories 55,000 32,000 36,000 Other current assets 110,000 90,000 110,000 Land 100,000 30,000 90,000 Plant and equipment-net 1,320,000 312,500 375,000 Accumulated depreciation-Plant. (660,000) (62,500) $950,000 $414,000 Liabilities $220,000 $50,000 $50,000 Capital stock, $10 par value 500,000 100,000 Additional paid-in capital 170,000 40,000 Retained earnings 60,000 224,000 $950,000 $414,000 Required: 1. Prepare the journal entry on Parent Company's books to account for the investment in Subsidiary Company. 2. Show the following pre-calculation: Percentage of controllable ownership and non-controllable ownership Acquisition cost and 100% implied acquisition cost 100% Subsidiary's book value and fair value 100% Unamortized excess, as if. 100% Goodwill or Gain on bargain purchase, as if. 3. Prepare a consolidation worksheet for Parent Company and Subsidiary immediately after the business combination, including the explanation for worksheet transactions with sequence numbers. Put the balances of 'Investment in Subsidiary', Parent's capital stocks and additional paid-in after acquisition in the first column of the worksheet, include the total amount