57. Comprehensive consolidation subsequent to date of acquisition, AAP computation, gooduill, upstream and downstream intercompany inventory profits, downstream intercompany depreciable asset gain-Equity method A parent company acquired 100 percent of the stock of a subsidiary company on January 1. 2018, for $270,000. On this date, the balances of the subsidiary's stockholders' equity accounts were Common Stock, $163,800, and Retained Earnings, $17,640. On January 1, 2018, the subsidiary's recorded book values were equal to fair values for all items except four: (1) accounts receivable had a book value of $50,400 and a fair value of $45,360, (2) buildings and equipment, net had a book value of $44,100 and a fair value of $66,780, (3) the Customer List intangible asset had a bool value of $12,600 and a fair value of $65,520, and (4) notes payable had a book value of $27,000 and a fair value of $25,200. Both companies use the FIFO inventory method and sell all of their inventories at least once per year. The net balance of accounts receivable is collected in the following year. On the acquisition date, the subsidiary"s buildings and equipment, net had a remaining useful life of 6 years, the Customer List had a remaining useful life of 7 years, and noses payable had a remaining term of 4 years. On January 1, 2021, the parent sold a building to the subsidiary for $81,900. On this date, the building was enrried on the subsidiary's books (net of accumulated depreciation) at 563,000 . Both companies estimated that the building has a remaining life of 6 years on the intercompany sale date, with no salvage value. Each company routinely sells merchandise to the other company, with a profit margin of 25 percent of selling price (regardless of the direction of the sale). During 2022 , intercompany sales amount to $18,900, of which $10,080 of merchandise remains in the ending imentory of the parent. On December 31. 2022. $5,040 of these intercompany sales remained unpaid. Additionally, the subsidiary's December 31, 2021, inventory includes $15,120 of merchandise parchased in the preceding year from the parent. During 2021 , intercompany sales amount to $22,500, and on December 31,2021,$3,600 of these intercompany siles remained unpsiat. Following are preconsoludation financial slatements of the parent and its investment bookkeeping- Complete the consolidating entries according to the C-E-A-D-I sequence and complete the consolidation worksheet. 57. Comprehensive consolidation subsequent to date of acquisition, AAP computation, gooduill, upstream and downstream intercompany inventory profits, downstream intercompany depreciable asset gain-Equity method A parent company acquired 100 percent of the stock of a subsidiary company on January 1. 2018, for $270,000. On this date, the balances of the subsidiary's stockholders' equity accounts were Common Stock, $163,800, and Retained Earnings, $17,640. On January 1, 2018, the subsidiary's recorded book values were equal to fair values for all items except four: (1) accounts receivable had a book value of $50,400 and a fair value of $45,360, (2) buildings and equipment, net had a book value of $44,100 and a fair value of $66,780, (3) the Customer List intangible asset had a bool value of $12,600 and a fair value of $65,520, and (4) notes payable had a book value of $27,000 and a fair value of $25,200. Both companies use the FIFO inventory method and sell all of their inventories at least once per year. The net balance of accounts receivable is collected in the following year. On the acquisition date, the subsidiary"s buildings and equipment, net had a remaining useful life of 6 years, the Customer List had a remaining useful life of 7 years, and noses payable had a remaining term of 4 years. On January 1, 2021, the parent sold a building to the subsidiary for $81,900. On this date, the building was enrried on the subsidiary's books (net of accumulated depreciation) at 563,000 . Both companies estimated that the building has a remaining life of 6 years on the intercompany sale date, with no salvage value. Each company routinely sells merchandise to the other company, with a profit margin of 25 percent of selling price (regardless of the direction of the sale). During 2022 , intercompany sales amount to $18,900, of which $10,080 of merchandise remains in the ending imentory of the parent. On December 31. 2022. $5,040 of these intercompany sales remained unpaid. Additionally, the subsidiary's December 31, 2021, inventory includes $15,120 of merchandise parchased in the preceding year from the parent. During 2021 , intercompany sales amount to $22,500, and on December 31,2021,$3,600 of these intercompany siles remained unpsiat. Following are preconsoludation financial slatements of the parent and its investment bookkeeping- Complete the consolidating entries according to the C-E-A-D-I sequence and complete the consolidation worksheet