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McClellan, Inc. acquires all of the outstanding common stock of Cranston Enterprises for $150,000 cash. On the acquisition date, the subsidiary had Common Stock of $30,000 and Retained Earnings of $30,000. A patent unrecorded by Cranston was valued at $60,000.
Required:
a. Prepare the entry on McClellan's books to record the purchase.
b. Prepare all necessary consolidation entries.
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