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Orange Corporation has acquired 60% of Pink Conpany stock for $900,000 on lanury 1,2017, when Pink Equity consist of $450,000 capital sock and $200,000 retained earnings. - Subsidiary had net insome of 300,000 and had distributed cash dividends of $35,000 which was recorded as payable by the subsidiary. - Subsidiary Building was undervalued by $700,000 in time acquisition. - Any exeess differential above the $700,000 which was mentioned above should be allocated to Goodwill. - The Bualding has useful life of 10 years Scparale Company financial statements for the year ended December 31, 2017 for parent and its Subsidiarv nowided helow: Use. Equity method to calcelate the following o Calcelate the following:(Marks: 4) - unansortized excess amount and - the amount to be allocated to the goodwill - Calculate the adjusted income from subsidiary for [Marks: 4] o. the parent and o the NCl - Record the climination entries required (27 marks, each account 1.5 marks) [Marks: 4+4+27=35] Orange Corporation has acquired 60% of Pink Conpany stock for $900,000 on lanury 1,2017, when Pink Equity consist of $450,000 capital sock and $200,000 retained earnings. - Subsidiary had net insome of 300,000 and had distributed cash dividends of $35,000 which was recorded as payable by the subsidiary. - Subsidiary Building was undervalued by $700,000 in time acquisition. - Any exeess differential above the $700,000 which was mentioned above should be allocated to Goodwill. - The Bualding has useful life of 10 years Scparale Company financial statements for the year ended December 31, 2017 for parent and its Subsidiarv nowided helow: Use. Equity method to calcelate the following o Calcelate the following:(Marks: 4) - unansortized excess amount and - the amount to be allocated to the goodwill - Calculate the adjusted income from subsidiary for [Marks: 4] o. the parent and o the NCl - Record the climination entries required (27 marks, each account 1.5 marks) [Marks: 4+4+27=35]