3. Prepare a schedule to determine consolidated net income.

Parent Company purchased 80% of the outstanding stock of Subsidiary Company on January 1,2024 , for $802,720 cash. At the acquisition date, Subsidiary's total fair value, including the noncontrolling interest, was assessed at $1,003,400, although Subsidiary's book value was only $690,000. At the date of acquisition, several individual items on Subsidiary's financial records had fair values that differed from their book values as follows: For internal reporting purposes, Parent employs the equity method to account for this investment. The account balances for Parent and Subsidiary for the year ending December 31, 2024, are given on the next page. At year-end, there were no intra-entity receivables or payables. \begin{tabular}{|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Revenues } & \multicolumn{2}{|r|}{ Parent } & \multicolumn{2}{|r|}{ Subsidiary } \\ \hline & $ & (1,394,980) & $ & (684,900) \\ \hline Cost of goods sold & & 774,000 & & 432,000 \\ \hline Depreciation expense & & 274,000 & & 11,600 \\ \hline Amortization expense & & - & & 6,100 \\ \hline Interest expense & & 52,100 & & 9,200 \\ \hline Equity in income of subsidiary & & (177,120) & & \\ \hline Net income & $ & (472,000)S & $ & (226,000) \\ \hline Retained earnings, 1/1/24 & $ & (1,275,000) & $ & (530,000) \\ \hline Net income & & (472,000) & & (226,000) \\ \hline Dividends declared & & 260,000 & & 65,000 \\ \hline Retained earnings, 12/31/24 & 5 & (1,487,000)S & & (691,000) \\ \hline Current assets & $ & 856,160 & $ & 764,700 \\ \hline Investment in Subsidiary & & 927,840 & & - \\ \hline Land & & 360,000 & & 65,000 \\ \hline Buildings and equipment (net) & & 909,000 & & 275,400 \\ \hline Copyright & & - & & 115,900 \\ \hline Total assets & $ & 3,053,000 & $ & 1,221,000 \\ \hline Accounts payable & $ & (275,000) & $ & (194,000) \\ \hline Notes payable & & (541,000) & & (176,000) \\ \hline Common stock & & (300,000) & & (100,000) \\ \hline Additional paid-in-capital & & (450,000) & & (60,000) \\ \hline Retained earnings, 12/31/24 & & (1,487,000) & & (691,000) \\ \hline Total liabilities and equities & & (3,053,000) & & 1,221,000) \\ \hline \end{tabular}