5. Masterson Company acquires a 80% interest in its subsidiary for a purchase price of $620,800. The excess of the purchase price over the book value of the subsidiarys Stockholders Equity is allocated to a building (in PPE, net) that the parent believes is worth $50,000 more than its book value, an unrecorded Patent that the parent valued at $100,000, and Goodwill of $150,000, 80% of which is allocated to the parent.

The parent and the subsidiary report the following balance sheets on the acquisition date:

	Masterson	Subsidiary			Masterson	Subsidiary
Cash	$ 920,753	$107,576		Current Liabilities	$ 814,779	$165,648
Accounts receivable	725,760	165,648		Long-term Liabilities	3,379,200	238,000
Inventory	1,099,980	212,772		Common Stock	927,045	47,600
Equity Investment	620,800			APIC	688,905	59,500
PPE, net	5,291,244	393,652		Retained Earnings	2,848,608	368,900
	$8,658,537	$879,648			$8,658,537	$879,648

Prepare the consolidation journal entries on the acquisition date.