Assume a parent company acquired 75% of the common stock of a subsidiary a few years ago. On the acquisition date, the fair value of the controlling interest and noncontrolling interest equaled the respective proportionate share of the subsidiarys reported book value of equity. In addition, the book values of the subsidiarys identifiable net assets approximated their fair values and there was no goodwill (i.e., there is no AAP). On December 31, 2020, the subsidiary sold equipment to the parent for a cash price of $60,000 . The subsidiary originally acquired the equipment at a cost of $100,000 , estimated a 10-year useful life for the equipment, and used the straight-line method of depreciation (no salvage value). At the time of the intercompany sale, the subsidiary had depreciated the equipment for a full 5 years. The parent retained the depreciation policy of the subsidiary and depreciated the equipment over its remaining 5-year useful life. The parent uses the equity method of pre-consolidation bookkeeping for its Equity Investment. The parent and the subsidiary report the following pre-consolidation financial statements for the year ended December 31, 2022:

Required Prepare the consolidation spreadsheet for the year ended December 31, 2022. Note: The label for consolidation step has been provided if there is more than one debit or credit adjustment to the account. Note: Not all answer fields will be used, leave unused answer fields blank. Note: Use negative signs with answers in the Consolidated column, when appropriate.

\begin{tabular}{|l|r|r|r|r|r|} \hline & Parent & \multicolumn{1}{l}{ Subsidiary } & Parent & Subsidiary \\ \hline Income statement: & & & Balance sheet: & & \\ \hline Sales & $500,000 & $200,000 & Cash & $39,000 & $16,000 \\ \hline Cost of goods sold & (300,000) & (130,000) & Accounts receivable & 54,000 & 48,000 \\ \hline Gross profit & 200,000 & 70,000 & Inventories & 130,000 & 46,000 \\ \hline Depreciation \& amort. Expense & (12,000) & (10,000) & Buildings and equipment, net & 126,000 & 90,000 \\ \hline Operating expenses & (150,000) & (28,000) & Other assets & 57,000 & 100,000 \\ \hline Interest expense & (6,000) & (2,000) & Licenses & & 10,000 \\ \hline Total expenses & (168,000) & (40,000) & Equity investment & 168,000 & - \\ \hline Income (loss) from subsidiary & 24,000 & & Total assets & $574,000 & $310,000 \\ \hline Net income & $56,000 & $30,000 & & & \\ \hline Retained earnings statements & & & Accounts payable & $34,000 & $10,000 \\ \hline Beginning balance & $202,000 & $110,000 & Notes payable & 50,000 & 20,000 \\ \hline Net income & 56,000 & 30,000 & Other liabilities & 32,000 & 50,000 \\ \hline Dividends declared & (40,000) & (10,000) & Common stock & 240,000 & 100,000 \\ \hline Ending retained earnings & $218,000 & $130,000 & Retained earnings & 218,000 & 130,000 \\ \hline & & & Total liabilities and equity & $574,000 & $310,000 \\ \hline \hline \end{tabular} Required Prepare the consolidation spreadsheet for the year ended December 31, 2022. Note: The label for consolidation step has been provided if there is more than one debit or credit adjust Note: Not all answer fields will be used, leave unused answer fields blank. Note: Use negative signs with answers in the Consolidated column, when appropriate