2) Parent Corporation purchased 100,000 previously unissued shares of Sub Company's $10 par value common stock directly from Sub for $1,800,000. Sub's stockholders' equity immediately before the investment by Parent consisted of 400,000 shares of common stock with a par value of $4,000,000 and $4,200,000 in retained earnings. What is Parent's book value of equity in the net assets of Sub? (use the grid below for your answer)

Sub Shares outstanding before issue of new shares
+ Shares issued to Parent
= Total shares outstanding (after issuance of new)
Percentage (of shares) owned by Parent
Value of Stockholders' equity before issue of new shares
+Investment by Parent
=Stockholders' equity after Parent investment
Parent's percentage ownership
= Book value of Parent's interest