Assume that, on January 1, 2019, Flyer Company acquires a 70% interest in Griffin Company for a purchase price that was $400,000 over the book value of the Griffin's Stockholders Equity on the acquisition date. The assigned the acquisition-date AAP as follows:

AP Items

Initial Fair Value

Useful Life (years)

patent	150,000	10
Goodwill	250,000	Indefinite
	$400,000

The parent and the subsidiary report the following financial statements at December 31, 2025:

Income Statement

Parent	Sub
Sales	$6,000,000	$2,250,000
Cost of goods sold	-3,700,000	-1,305,000
Gross Profit	2,300,000	945,000
Income (loss) from subsidiary	343,000
Operating expenses	-890,000	-440,000
Net income	$1,753,000	$505,000

Statement of Retained Earnings

Parent	Sub
BOY Retained Earnings	$9,010,600	$3,797,500
Net income	1,753,000	505,000
Dividends	-280,500	-54,000
EOY Retained Earnings	$10,483,100	$4,248,500

Balance Sheet

Parent	Sub
Assets:
Cash	$930,600	$575,600
Accounts receivable	1,851,000	813,800
Inventory	2,216,600	1,207,900
Equity Investment	3,769,150
PPE, net	6,407,250	3,395,400
	$15,174,600	$5,992,700

Liabilities and Stockholders Equity:
Current Liabilities	$627,400	$403,200
Long-term Liabilities	1,167,100	500,000
Common Stock	896,000	190,000
APIC	2,001,000	651,000
Retained Earnings	10,483,100	4,248,500
	$15,174,600	$5,992,700

Required: Prepare the following consolidation journal entries.

a. To eliminate the beginning balances in SE(S)

b. To Allocate beginning-of-year AAP to the controlling and noncontrolling interest

c. To record amortization of patent