Consolidation at Date Acquisition, Ownership 100%, FMVBV. 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...

Consolidation at Date Acquisition, Ownership 100%, FMVBV.

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.


• Use Excel formulas to derive the Consolidated column amounts and totals.


• Using the "Home" key in Excel, go to the "Styles" area and highlight the [E] and [A] entry cells in different shades.