A parent company exchanges 5,000 shares of its $2 par value common stock, with a market value of $10/share, for all of the shares owned by the subsidiary's shareholders, resulting in a $50,000 total purchase price. On the acquisition date, the subsidiary reported a book value of Stockholders' Equity of $37,500, comprised of $15,000 of Common Stock and $22,500 of Retained Earnings. An examination of the subsidiary's balance sheet revealed that book values were equal to fair values for all assets except for PPE (net), which has a book value of $20,000 and a fair value of $32,500.a. Prepare the entry that the parent makes to record the investment. General JournalDescription Debit CreditAnswerEquity investmentPPE (net)Common stockAdditional paid-in capitalRetained earnings Answer AnswerCommon stock Answer AnswerAnswerEquity investmentPPE (net)Common stockAdditional paid-in capitalRetained earnings Answer Answerto record the acquisition b. Prepare the [E] and [A] consolidation entries. Consolidation WorksheetDescription Debit Credit[E] Common stock Answer AnswerAnswerEquity investmentPPE (net)Common stockAdditional paid-in capitalRetained earnings Answer AnswerAnswerEquity investmentPPE (net)Common stockAdditional paid-in capitalRetained earnings Answer Answerto eliminate the stockholders' equity of subsidiary on the acquisition date [A] AnswerEquity investmentPPE (net)Common stockAdditional paid-in capitalRetained earnings Answer AnswerAnswerEquity investmentPPE (net)Common stockAdditional paid-in capitalRetained earnings Answer Answerto record the [A] assets purchased on the acquisition date