Assume a parent company acquired its subsidiary on January 1, 2009, at a purchase price that was $310,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $210,000 was assigned to a Customer List that is being amortized over a 10-year period. The remaining $100,000 was assigned to Goodwill.

In January of 2012, the wholly owned subsidiary sold Equipment to the parent for a cash price of $122,500. The subsidiary had acquired the equipment at a cost of $140,000 and depreciated the equipment over its 10- year useful life using the straight-line method (no salvage value). The subsidiary had depreciated the equipment for 4 years at the time of sale. The parent retained the depreciation policy of the subsidiary and depreciated the equipment over its remaining 6-year useful life.

The parent uses the equity method to account for its Equity Investment. The Customer List was amortized as part of the parent's equity method accounting. Goodwill is not ammortized.

Please calculate part C (show calculations if possible!!)

C.Show the computation to yield the $127,417 of Income (loss) from subsidiary reported by the parent for the year ended December 31, 2013. Hint: Use negative signs with answers when appropriate. Net income of subsidiary 142,000 AAP Depreciation Deferred gain on intercompany sale Equity income 127,417