3. Parent company acquired 100% of Filia Inc. on January 31, 20X2 in exchange for cash. The book value of Filia's individual assets and liabilities approximated their acquisition date fair values. On the date of acquisition, Filia reported the following: Cash $ 175,000 Current Liabilities $ 60,000 Inventory 50,000 Plant Assets (net) 160,000 Common Stock 50,000 Property 250,000 Retained Earnings 525,000 Total Assets $ 635.000 Total Liabilities & Equity5 635.000 *Additional Info: Parent purchases sub for $170,000. Sub's fmx = NAV except inventory+ 10,000 and patent with a 5 yr life, +25,000. Following are the financials for the parent and sub after one year of operations. Using this information, create the entries needed for consolidation and the consolidated financials. I/S PARENT SUB Sales $365,000 $180,000 COGS (220,000) (90,000) 145,000 90,000 62,000 0 Gross Margin Income from Sub Depreciation Exp Other Op expenses Net Income (45,000) (45,000) $ 117,000 (8,000) (5,000) $ 77,000 Statement of R/E $ 152,000 117,000 Beginning R/E Net Income Less Dividends Ending R/E $ 30,000 77,000 (47,000) $ 60,000 (50,000) $ 219,000 B/S $ 35,000 Cash & Receivables Investment in sub $ 80,000 (185,000) Inventory 60,000 50,000 Land 100,000 60,000 PP&E 136,000 Total Assets $ 561,000 $ 92,000 52,000 $197,000 $ 47,000 20,000 A/P Common Stock 50,000 APIC 200,000 70,000 R/E 219,000 60,000 $197,000 Equity & Liabilities $ 561,000 3. Parent company acquired 100% of Filia Inc. on January 31, 20X2 in exchange for cash. The book value of Filia's individual assets and liabilities approximated their acquisition date fair values. On the date of acquisition, Filia reported the following: Cash $ 175,000 Current Liabilities $ 60,000 Inventory 50,000 Plant Assets (net) 160,000 Common Stock 50,000 Property 250,000 Retained Earnings 525,000 Total Assets $ 635.000 Total Liabilities & Equity5 635.000 *Additional Info: Parent purchases sub for $170,000. Sub's fmx = NAV except inventory+ 10,000 and patent with a 5 yr life, +25,000. Following are the financials for the parent and sub after one year of operations. Using this information, create the entries needed for consolidation and the consolidated financials. I/S PARENT SUB Sales $365,000 $180,000 COGS (220,000) (90,000) 145,000 90,000 62,000 0 Gross Margin Income from Sub Depreciation Exp Other Op expenses Net Income (45,000) (45,000) $ 117,000 (8,000) (5,000) $ 77,000 Statement of R/E $ 152,000 117,000 Beginning R/E Net Income Less Dividends Ending R/E $ 30,000 77,000 (47,000) $ 60,000 (50,000) $ 219,000 B/S $ 35,000 Cash & Receivables Investment in sub $ 80,000 (185,000) Inventory 60,000 50,000 Land 100,000 60,000 PP&E 136,000 Total Assets $ 561,000 $ 92,000 52,000 $197,000 $ 47,000 20,000 A/P Common Stock 50,000 APIC 200,000 70,000 R/E 219,000 60,000 $197,000 Equity & Liabilities $ 561,000