1] On January 1, Yr 1, Parent Co. purchased F0236 of the outstanding common shares of Sub Co. for $10,000. On that date, Sub's shareholders' equity consisted of common shares of 5550, retained earnings of $5,300; and Sub had accumulated depreciation of 5?25. 2] In negotiating the purchase price at the date of acquisition, the fair values of all of Sub's assets and liabilities were equal to their carrying values, except for inventory having a fair value that was 5100 lower... 3] ....and a patent [with no carrying value] with a fair value of 5400. The remaining useful life of the patent was 10 years at that time. 4] Goodwill from Sub acquisition is regularly assessed for impairment and was written down by 5500 in Yr 3. 5] During Yr 3, product sales from Parent to Sub were 5850. 6] Sub's inventory contained product purchased from Pa rent for $130 at the end of Yr 2 and 5140 at the end of Yr 3. Parent earns a gross profit of 40% on these sales. ?] Also, at the end of Yr 3, 560 is still owed to Parent from Sub from these sales. 8] On Jan 1, Yr 2, Sub sold land to Parent and recorded a gain of $465 before taxes. The land is still held by Parent at the end of Yr 3. 9] Parent also has 5300 of Yr3 dividend revenue from Sub included in other revenue. The cost method is used by Parent to record Sub on their books. Fair value enterprise method is used to value noncontrolling interest. Both companies are subject to an income tax rate of 25%. The entity financial statements for Parent and Sub for Yr 3 are presented below in columns CScD. guired: SHOW work below each required. Add rows as needed. ROUND amounts to the nearest dollar. 1} Use the spreadsheet provided below for this question whereby your adjustments will be in colum us that tie to the f? references above. Modify the spreadsheet as needed. Sh ow any calculations in Part 2 below so that they agree to the spreadsheet. If we cannot follow your calcu lations easily outside the cells, canmt award part marks. a] Prepare a consolidated statement of income for the year ended December 31, Yr 3. b] Prepare the consolidated statement of financial position at December 31, Yr 3.