Advanced Accounting Take Home Exam Chapters 1,2, 36) Read-Onlyi [Compatibility Mode Microsoft Word ences Mailings ReviewViewAcrobat AaBbCcDc AaBbCcD l'Normal A-z-A- a-M, No Spa.. Heading 1 Heading 2 Title Suit - Paragraph Scenario On January 1, 20X1, Parent Company purchased 80% ofthe common stock ofSubsidiary Company for $316,000. On this date, Subsidiary had common stock other paid-in capital, and retained earnings of $40,000, $120,000, and $190,000, respectively. Net income and dividends for 2 years for Subsidiary Company were as follows: Net income Dividends $50,000 10,000 20X2 $90,000 20,000 On January 1,20X1, the only tangible assets of Subsidiary that were undervalued were inventory and building Inventory, for which FIFO is used, was worth $5,000 more than cost. Theinventory was sold in 20X1. Building, which was worth $15,000 more than book value, has a remaining life of 8 years, and straight-line depreciation is used. Any remaining excess is goodwill. Complete the consolidating worksheet for December 31,20x2. (8 points) Prepare your own worksheet from the following and complete Contrating 120 Consolidale Advanced Accounting Take Home Exam Chapters 1,2, 36) Read-Onlyi [Compatibility Mode Microsoft Word ences Mailings ReviewViewAcrobat AaBbCcDc AaBbCcD l'Normal A-z-A- a-M, No Spa.. Heading 1 Heading 2 Title Suit - Paragraph Scenario On January 1, 20X1, Parent Company purchased 80% ofthe common stock ofSubsidiary Company for $316,000. On this date, Subsidiary had common stock other paid-in capital, and retained earnings of $40,000, $120,000, and $190,000, respectively. Net income and dividends for 2 years for Subsidiary Company were as follows: Net income Dividends $50,000 10,000 20X2 $90,000 20,000 On January 1,20X1, the only tangible assets of Subsidiary that were undervalued were inventory and building Inventory, for which FIFO is used, was worth $5,000 more than cost. Theinventory was sold in 20X1. Building, which was worth $15,000 more than book value, has a remaining life of 8 years, and straight-line depreciation is used. Any remaining excess is goodwill. Complete the consolidating worksheet for December 31,20x2. (8 points) Prepare your own worksheet from the following and complete Contrating 120 Consolidale