Assume that on 1/1/X0, a parent company acquires a 70% interest in its subsidiary for a price at $480,000 over book value. The excess is assigned as follows: Asset Fair Value Useful Life
Patent $320,000 8 years
Goodwill 160,000 Indefinite
70% of the goodwill is allocated to the parent.
Included in the attached Excel spreadsheet are the pre-consolidation financial statements for both the parent and the subsidiary.
Submission Requirements:
Prepare the consolidated financial statements at 12/31/X6 by placing the appropriate entries in their respective debit/credit column cells.