Business, 30.12.2019 22:31, yobanajk

Assume that a parent company acquires its subsidiary on 1/1/xx, by exchanging 41,500 shares of its $1 par value common stock, with a market value on acquisition date of $36 per share, for all of the outstanding voting shares of the subsidiary. you have been charged with preparing the consolidation of these two entities at 12/31/xx. on acquisition date (1/1/xx), all of the subsidiary’s assets and liabilities had fair values equaling their book values except ppe assets are undervalued by $81,000 (depreciation =$5,400 per year), the subsidiary has an unrecorded patent with a fair value of $261,000 (amortization = $32,625 per year) and the parent records $162,000 of goodwill in the transaction. submission requirements:

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Assume that a parent company acquires its subsidiary on 1/1/xx, by exchanging 41,500 shares of its $...