1)On January 1, Yr 1, Parent Co. purchased 70% of the outstanding common shares of Sub Co. for $10,000.On that date, Sub's shareholders' equity consisted of common shares of $550, retained earnings of $5,800; and Sub had accumulated depreciation of $725.

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 $100 lower...

3)....and a patent (with no carrying value) with a fair value of $400.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 $500 in Yr 3.

5)During Yr 3, product sales from Parent to Sub were $850.

6)Sub's inventory contained product purchased from Parent for $180 at the end of Yr 2 and $140 at the end of Yr 3.Parent earns a gross profit of 40% on these sales.

7)Also, at the end of Yr 3, $60 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 $300 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 non-controlling interest. Both companies are subject to an income tax rate of 25%.

SEE EXCEL file for the entity financial statements for Parent and Sub for Yr 3

as well as the REQUIRED.Show all calculations where indicated.

Dn Januarv 1, 2016, PAR Inc. purchased 65% of the shares of SUB Co.for $8,000 when retained earnings of SUB was $9,500. The investment is recorded at cost bv PAR and the F'U'E method was used to value goodwill. At the date of the acquisition, trademarks with a fair value of S500 were identified that were not recorded on the books of SUB. also, the building was valued at $200 higher than book value. The trademarks had a remaining useful life of Svears, and the building had a remaining useful life of 40vears, at that time. PAR booked a goodwill impairment loss on goodwill resulting from the SUB acquisition of $135 in 2019. During 2020, PAR Inc. reported income of $800 and Sub Co. 550. Dividends of S100 were paid bv Sub to PAR. at December 31, 2020, the entitv retained earnings of PEAR Inc. is 516,500 and SUB Co. is 510300. At the end of 2019, PAR had $1130 of inventorv still on its books that was puchased from SUB {cost $145]. at the end of 2020, PEAR had 5115 of inventorv still on its books that was puchased from SUB {cost 5101. Taxes are 30%. Rguired: Show and labelcalculatiom'. Calculate mmlidated ending retained earnings reported on PAR Inc.'s Dec 31, 2020 balance sheet