2-McKinney Company acquires an 60% interest in its Sandstone for a purchase price of $1,000,000. The exces cess of the purchase price over the book value of the Sandstone's Stockholders' Equity is allocated to a building in PPE, net) that is worth $212,250 more than its book value, an unrecorded Patent that the parent valued at $125,000, and Goodwill of $348,417, 60% of which is allocated to the parent. The parent and the Sandstone report the following balance sheets on the acquisition date: McKinney. Sandstone McKinney. Sandstone Cash $1,500,000 $300,000 Current Liabilities $750,000 $300,000 Accounts receivable 1,597,500 240,000 Long-term Liabilities 1,268.222 410,000 Inventory 2,689,550 275.000 Common Stock 235,000 75,000 Equity Investment 1,000,000 APIC 5.472.211 156,000 PPE, net 6,008 510 876.000 Retained Earnings 5.070.127 750,000 $12.795,560 $1.691.000 $12.799,560 $1.691.000 Required: Prepare the consolidation journal entries on the acquisition date