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Consolidation entries for an acquisition

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A parent acquired 100% of a subsidiary by exchanging stock valued at $2,000,000. The equity of the sub was $1,500,000 and the fair market value of the fixed assets exceeded the book value by 200,000.
1. What would be the consolidation entry under a purchase?
2. What do you think would be the consolidation entry if the parent only acquired 80% of the subsidiary?

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The expert examines consolidation entries for an acquisition.

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1. Proceed: $2000k
<br> Equity: $1500k
<br> Purchase Price Diff: $500k allocated ...

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