10- The difference of vehicles according to parent company method adopted will be: А $ 40000 Dr. B с $ 60000 Dr. $ 28000

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10- The difference of vehicles according to parent company method adopted will be: А $ 40000 Dr. B с $ 60000 Dr. $ 28000 Dr. D Second question: $ 40000 Cr. On Jan 1, 2015 D Corporation was formed with a total capital of 2 million Dollars. D Grade Corporation paid $ 500000 to own the full common stock of A corporation, and other of-pocket money paid is $ 12000 commission. Also D Corporation paid $ 180000 to own the full common stock of B corporation, and other of-pocket money paid is $ 8000 commission. The Financial Position statement of the two corporations before consolidation was as follows: А (A) Fair B (B) Fair Value Corporation Value Corporation Cash 200000 200000 50000 50000 A/R 120000 130000 20000 18000 Inventory 180000 200000 60000 75000 Machines 100000 80000 40000 38000 Vehicles 160000 125000 30000 25000 Total Assets 760000 735000 200000 206000 A/P 310000 300000 50000 30000 Common Stock 300000 100000 Paid-in Capital 100000 30000 Retained Earnings 50000 20000 Total Equity & Liabilities 760000 200000 The corporation adopted the Purchase Method Instructions: 1. Compute cost of investment 2. Write the entries needed 3. Prepare the opening combined financial position statement for D Corporation