ntercorporate Investments Illustration of Consolidation The Facts. Pharmaceutical Corp(parent) acquires silicon Supplies (subsidiary Assets and liabilities in the balance sheet of Silicon Supplies are at fair values Pharmaceutical pays $78, 000 (in millions) for 90% of Silicon Supplies' common stock fair values of net assets acquired equal 90%of$80,000,or$72,000 Accounts receivable of Pharmaceutical los. include $4, 000 owed to it by Silicon SuppliesThe Facts: • Pharmaceutical Corp (parent) acquires Silicon Supplies (subsidiary) • Assets and liabilities in the balance sheet of Silicon Supplies are at fair values • Pharmaceutical pays $78,000 (in millions) for 90% of Silicon Supplies’ common stock — fair values of net assets acquired equal 90% of $80,000, or $72,000 • Accounts receivable of Pharmaceutical include $4,000 owed to it by Silicon Supplies Intercorporate Investments Illustration of Consolidation