arent Co. owns 9,000 shares of Sub Co. and accounts for its investment by the equity method. On December 31, Year 5, the shareholders equity of Sub was as follows: Common shares (10,000 shares issued) $ 100,000 Retained earnings 160,000 On January 1, Year 6, Parent sold 1,800 shares from its holdings in Sub for $64,800. On this date and prior to the sale, the balance in the investment in Sub account was $320,000, and the undepleted acquisition differential was allocated in the following manner: 45% to land 30% to equipment (remaining useful life, 5 years) 25% to patents (remaining useful life, 10 years) During Year 6, Sub reported a net income of $145,000 and paid dividends totalling $80,000. Required: (a) - (i) Prepare the journal entry that Parent would make on January 1, Year 6, to record the sale of the 1,800 shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (a) - (ii) Calculate the amount of the undepleted acquisition differential that would be allocated to land, equipment, and patents on December 31, Year 6 on the consolidated balance sheet. (Round intermediate calculations and final answers to nearest whole dollar amount. Omit $ sign in your response.) Undepleted Amount Land $ Equipment $ Patents $ (a) - (iii) Prepare a reconciliation between Parents investment account and the combination of the Subs shareholder's equity and unamortized acquisition differential at December 31, Year 6. (Round intermediate calculations and final answers to nearest whole dollar amount. Negative/Deductible amounts should be indicated by a minus sign. Omit $ sign in your response.) Investment account Jan. 1, Year 6 $ 20% sold Changes to acquisition differential Net income Dividends Balance Dec. 31, Year 6 equity method $ Shareholders' equity Sub $ Parent's percentage ownership % Balance Parents share of undepleted acquisition differential $ 100% of undepleted acquisition differential $ (b) The accountant of Parent must prepare a consolidated cash flow statement for Year 6 by analyzing the changes in the consolidated balance sheets from December 31, Year 5, to December 31, Year 6. She needs some assistance in determining what effect Parents sale of 1,800 shares had on the consolidated financial statements. Prepare a journal entry to record the effect that the January 1, Year 6, sale of shares had on the consolidated entity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to nearest whole dollar amount.) PrevQuestion 5 of 23 Total5 of 23Visit question mapScore