ANSWER BOTH PART A AND B$!!$ Consolidation at date of acquisition $($purchase price greater than book value, acquisition journal entries,$$deferred tax liability$)$

Assume that the parent company acquires its subsidiary in a $$nontaxable$$ transaction by exchanging $96,000$ shares of its $$5$ par value Common Stock, with a fair value on the acquisition date of $$42$ per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the fair value of each of the subsidiary$$s assets and liabilities equals their respective book values except for property, plant and equipment $($PPE$)$ assets that are undervalued by $$760,000,$ an unrecorded Customer List with a fair value of $$250,000,$ and an unrecorded Brand Name asset valued at $$570,000.$ And, finally, assume that the tax bases of the subsidiary$$s pre$-$acquisition identifiable net assets equal their book values. The parent company$$s effective tax rate is $36\%$

Consolidation at date of acquisition $($purchase price greater than book value, acquisition journal entries, deferred tax liability$)$ the tax bases of the subsidiary's pre$-$acquisition identifiable net assets equal their book values. The parent company's effective tax rate is $36\%.$

a$.$ Prepare the journal entry that the parent makes to record the acquisition.

General Journal Description Credit hat$()**^()$ APIC

b$.$ Given the following acquisition$-$date balance sheets for the parent and its subsidiary, prepare the consolidation spreadsheet.