Given Information: Assume that a parent company acquires a 70%… Given

  

Given Information: Assume that a parent company acquires a 70%… Given Information:Assume that a parent company acquires a 70% interest in a subsidiary for a purchase price of $1,078,000.  The excess of total fair value of controlling and noncontrolling interests over book value is assigned to; a building (PPE net) that is worth $100,000 more than book value, an unrecorded patent valued at $200,000 and goodwill valued at $300,000.  Goodwill is assigned proportionately to the controlling and noncontrolling interests.Submission Requirements:Using the Excel spreadsheet:Prepare the consolidated balance sheet at the date of acquisition by placing the appropriate entries in their respective debit/credit column cells.Indicate, in the blank column cell to the left of the debit and credit column cells if the entry is an [E] or [A] entry.Image transcription textConsolidation Entries Parent Subsidiary Dr Cr Consolidated Cash 920,000 215,000 0 Accounts receivable782,000 330,000 0 Inventory 1,100,000 425,000 0 Equity investment 1,078,000 0 Property, plant andequipment (PPE), net 5,400,000 800,000 Patent 0 Goodwill 0 Total assets 9,280,000 1,770,000 … … Please provide an explanation and formulas necessary to solve a problem like this. Thank you! Business Accounting ACT 470 Share (0)