Assume that a parent company acquired 100% of a subsidiary on 1/1/X1. The purchase price was $175,000 in excess of the subsidiary's book value of net assets on acquisition date and the excess was assigned entirely to an unrecorded patent. The life of the patent is 10 years.

Assume the subsidiary sells inventory to the parent. The parent ultimately sells the inventory to outside customers. The following relates to the years X2 and X3:

-Inventory SalesGP of unsold inventoryReceivable (Payable)X3$103,300$29,441$41,320X2$87,900$19,137$27,986

The financial statements for the parent and subsidiary for the year ended 12/31/X3 are in the Excel spreadsheet.

• Prepare the consolidated financial statements at 12/31/X3 by placing the appropriate entries in their respective debit/credit column cells.
• Show the excel formulas you use to derive the Consolidated column amounts and totals.