Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 51

On January 1, 2009, Aronsen Company acquired 90 percent of Siedel Company's outstanding shares.Siedel had a net book value on that date of $480,000: common stock ($10 par value) of $200,000 and retained earnings of $280,000.
Aronsen paid $584,100 for this investment.The acquisition-date fair value of the 10 percent noncontrolling interest was $64,900.The excess fair value over book value associated with the acquisition was used to increase land by $89,000 and to recognize copyrights (16-year remaining life) at $80,000.Subsequent to the acquisition, Aronsen applied the initial value method to its investment account.
In the 2009-2010 period, the subsidiary's retained earnings increased by $100,000.During 2011, Siedel earned income of $80,000 while paying $20,000 in dividends.Also, at the beginning of 2011, Siedel issued 4,000 new shares of common stock for $38 per share to finance the expansion of its corporate facilities.Aronsen purchased none of these additional shares and therefore recorded no entry.Prepare the appropriate 2011 consolidation entries for these two companies.