Name ________________________________________________
Exercise Information:	4 Exercises	After reading the exercise, you may want to check the Hints in the 'Hints' tab.
On January 2, 2018, Parent Corporation acquired 75% of Subsidiary Company's outstanding common stock.
In exchange for Subsidiary's stock, Parent issued bonds payable with a par value of $500,000
and fair value of $510,000 directly to the selling stockholders of Subsidiary.
At that date, the fair value of the noncontrolling interest was $170,000.
The two companies continued to operate as separate entities subsequent to the combination
Immediately prior to the combination the book value and fair value of the companies' assets and liabilities were as follows:
Also, at the date of combination, Subsidiary owed Parent $6,000 plus accrued interest of $500 on a short-term note.
Both companies have properly recorded these amounts

1) Record the business combination on the books of Parent Corporation. 2) Show and Iabel the calculation of the total Differential. Put a box around the final answer. 3) Show and label the calculation of the total Goodwill (if any). Put a box around the final answer. 4) Record the consolidation entries (eliminating) needed in a worksheet to prepare a Consolidated Balance Sheet immediately following the business combination on Ja nuary 2,2018