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Capitol Company decided to sell one of its subsidiaries, Subsidiary ABC. BiRite Inc, is the...

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Accounting

Capitol Company decided to sell one of its subsidiaries, Subsidiary ABC. BiRite Inc, is the purchaser of this subsidiary- BiRite paid $2,000,000 for Subsidiary ABC. BiRite performed a valuation analysis of Subsidiary ABC's assets acquired and liabilities. The following table presents book values from Subsidiary ABC 's financial statements and fair values determined by BiRite:
\table[[Description,Book Value,Fair Value],[Inventory,420,000,5450,000],[Accounts Recelvable,330,000,330,000],[Prepaid Assets,70,000,60,000],[Equlpment,290,000,410,000],[Right-of-Use Building,330,000,360,000],[Patent,,220,000],[Trademark,125,000,125,000],[Current Liabilities,135,000,135,000],[Lease Obligation,,],[Other Long-term Liabilities,,170,000]]
a. Prepare the journal entry made by BiRite to record the acquitition of Subsidiary ABC.
b. Describe how the journal entry would be different if the acquisition price was 51 million.
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