3 ch 5-6 - Word Search ut References Mailings Review View Help 15. Al . 9 No Spac... Heading 1 Heading 2 Title Find Replace Select- 1 Normal Editing Paragraph 4. On January 1, 2016, Parent Company purchased 100% of the common stock of Subsidiary Company for $390,000. On this date, Subsidiary had common stock, other paid in capital and retained carnings of $50,000, 5100,000, and $200.000 respectively. Any excess of cost over book value is due to goodwill. Parent accounts for the Investment in Subsidiary using the simple equity method. On January 1, 2017. Parent purchased equipment for $204,120 and immediately leased the equipment to Subsidiary on a 4-year lease. The minimum lease payments of $60,000 are to be made annually on January 1, beginning immediately, for a total of 4 payments. The implicit interest rate is 12%. The lease provides for an automatic transfer of title at the end of 4 years. The estimated useful life of the equipment is 6 years. The lease has been capitalized by both companies. A lease amortization schedule, applicable to either company, is presented below: Carrying Carrying Interest Value on Value Rate Interest Payment Reduction 1-1-17 S204,120 - 60,000 1-1-17 144,120 12% $17.294 560.000 S42,706 - 42.706 1-1-16 101.414 1296 12.170 60.000 47,830 - 47,830 1-1-19 53,584 1296 6,416 60,000 $3,584 53.584 1-1-21 *Adjusted for rounding error. On January 1, 2016, Parent held merchandise acquired from Subsidiary for $10,000. During 2016, subsidiary sold merchandise to Parent for $50,000, of which $15,000 is held by Parent on December 31, 2016. Subsidiary's usual gross prolit on affiliated sales is 40%. 0 Required: Complete the worksheet for consolidated financial statements for the year ended December 31. 2016. Round all computations to the nearest dollar. (The workshoot below can be copied into Excel. Add rows as needed.) Also, prepare journal entries for the eliminations (No explanations) find 3 ch 5-6 - Word Search ut References Mailings Review View Help 15. Al . 9 No Spac... Heading 1 Heading 2 Title Find Replace Select- 1 Normal Editing Paragraph 4. On January 1, 2016, Parent Company purchased 100% of the common stock of Subsidiary Company for $390,000. On this date, Subsidiary had common stock, other paid in capital and retained carnings of $50,000, 5100,000, and $200.000 respectively. Any excess of cost over book value is due to goodwill. Parent accounts for the Investment in Subsidiary using the simple equity method. On January 1, 2017. Parent purchased equipment for $204,120 and immediately leased the equipment to Subsidiary on a 4-year lease. The minimum lease payments of $60,000 are to be made annually on January 1, beginning immediately, for a total of 4 payments. The implicit interest rate is 12%. The lease provides for an automatic transfer of title at the end of 4 years. The estimated useful life of the equipment is 6 years. The lease has been capitalized by both companies. A lease amortization schedule, applicable to either company, is presented below: Carrying Carrying Interest Value on Value Rate Interest Payment Reduction 1-1-17 S204,120 - 60,000 1-1-17 144,120 12% $17.294 560.000 S42,706 - 42.706 1-1-16 101.414 1296 12.170 60.000 47,830 - 47,830 1-1-19 53,584 1296 6,416 60,000 $3,584 53.584 1-1-21 *Adjusted for rounding error. On January 1, 2016, Parent held merchandise acquired from Subsidiary for $10,000. During 2016, subsidiary sold merchandise to Parent for $50,000, of which $15,000 is held by Parent on December 31, 2016. Subsidiary's usual gross prolit on affiliated sales is 40%. 0 Required: Complete the worksheet for consolidated financial statements for the year ended December 31. 2016. Round all computations to the nearest dollar. (The workshoot below can be copied into Excel. Add rows as needed.) Also, prepare journal entries for the eliminations (No explanations) find