ADVANCED ACCOUNTING UNIT 2 POST PROBLEM - SEPARATE SUBSIDIARY On June 30, 200X P paid $375,000 cash for 100% of the Common Stock of S Company. The transaction is an acquisition of wherein the acquired company is not dissolved. S Company is maintained as a separate subsidiary of P Company. It is still an entity, but in this case P Company owns all of it's stock. Following information is shown prior to acquisition being recorded: P Company Assets Liabilities and Capital Cash $580,000 Current Liabilities $90,000 Inventories 60,000 Common Stock $5PV 100,000 Plant Assets 340,000 Additional Paid in Capital 200,000 Retained Earnings 590,000 Total $980,000 Total $980,000 S Company Assets Liabilities and Capital Inventories $ 20,000 Current Liabilities $30,000 Other Assets 40,000 Long Term Liabilities 50,000 Plant Assets 140,000 Common Stock $10 PV 40,000 Additional Paid in Capital 20,000 Retained Earnings 60,000 Total $200,000 Total $200,000 Differences between identifiable net assets of S Company were: Current Fair Value Book Value Difference Inventories $50,000 $20,000 $30,000 Plant 250,000 140,000 110,000 A. Prepare the journal entries showing the purchase B. Prepare a schedule showing the amount of goodwill from this purchase. C Prepare a consolidation worksheet showing the eliminations. D. Prepare a