Assume that Palm Corporation had appropriately accounted for the December 31, 2018 business combination with its subsidiary, Starr Company. A partially completed financial statement worksheet for both companies for 2019 is below. In addition to the information in the worksheet other 2019 information follows: On December 20, 2019 Starr's Board of Directors declared a cash dividend of $.60 per share on the 40,000 outstanding shares of common stock owned by Palm. The dividend was payable January 8, 2020, to stockholders of record on December 29, 2019. Palm Corporation and Starr Company Financial Statement Data For Year Ended December 31, 2019 Starr Palm Corp. Co. Balance Sheets Assets Cash Inventories Other Current Assets Investment in Starr Common Stock Plant Assets - Net Patent (Net) Total Assets 80,000 136,000 90,000 7 480,000 75,000 120,000 111.000 532,000 290,000 20,000 616,000 25,000 163,000 Liabilities and Stockholders' Equity Income Taxes Payable 30,000 Other Liabilities 259.000 Common Stock, $10 par 400,000 Common Stock. $5 par Additional Paid in Capital 420,000 Retained Earnings 209,000 ? Total Liabilities and Stockholders' Equity 200,000 60.000 168,000 616,000 Statements of income and Retained Earnings For the Year Ended December 31, 2019 Net Sales 1,000,000 700,000 Intercompany Investment Income Total Revenue 1,000,000 700,000 Cost of Goods Sold 571,000 450,000 Gross Margin 429,000 250,000 130,000 (See Note Below Operating Expenses Interest Expense Income Tax Expense Total Expenses 220,000 45,000 65,600 330,600 48,000 178,000 Net Income 72,000 492 Beginning Retained Earnings 120,000 Less: Dividends Declared (20,000) (24,000) Ending Retained Earnings 168,000 204,000 Note: Operating Expense includes $20,000 and $5,000 of depreciation expense for Palm and Starr respectively. REQUIRED: Prepare Parent Company's Equity-Method Journal Entries to record the operating results of the subsidiary and any entry necessary to record depreciation and/or amortization of the Subsidiary's Net Assets. Note that with respect to Building Depreciation 1/2 is COGS and 1/2 is charged to operating expense. Inventory, Machinery and Patent amortization is 100% COGS. Also prepare any necessary year end elimination entry or entries. Prepare a consolidation worksheet and prepare a complete set of consolidated financial statements, in good form for 2019 - be sure to include a consolidated statement of cash flows - indirect method. Assume that Palm Corporation had appropriately accounted for the December 31, 2018 business combination with its subsidiary, Starr Company. A partially completed financial statement worksheet for both companies for 2019 is below. In addition to the information in the worksheet other 2019 information follows: On December 20, 2019 Starr's Board of Directors declared a cash dividend of $.60 per share on the 40,000 outstanding shares of common stock owned by Palm. The dividend was payable January 8, 2020, to stockholders of record on December 29, 2019. Palm Corporation and Starr Company Financial Statement Data For Year Ended December 31, 2019 Starr Palm Corp. Co. Balance Sheets Assets Cash Inventories Other Current Assets Investment in Starr Common Stock Plant Assets - Net Patent (Net) Total Assets 80,000 136,000 90,000 7 480,000 75,000 120,000 111.000 532,000 290,000 20,000 616,000 25,000 163,000 Liabilities and Stockholders' Equity Income Taxes Payable 30,000 Other Liabilities 259.000 Common Stock, $10 par 400,000 Common Stock. $5 par Additional Paid in Capital 420,000 Retained Earnings 209,000 ? Total Liabilities and Stockholders' Equity 200,000 60.000 168,000 616,000 Statements of income and Retained Earnings For the Year Ended December 31, 2019 Net Sales 1,000,000 700,000 Intercompany Investment Income Total Revenue 1,000,000 700,000 Cost of Goods Sold 571,000 450,000 Gross Margin 429,000 250,000 130,000 (See Note Below Operating Expenses Interest Expense Income Tax Expense Total Expenses 220,000 45,000 65,600 330,600 48,000 178,000 Net Income 72,000 492 Beginning Retained Earnings 120,000 Less: Dividends Declared (20,000) (24,000) Ending Retained Earnings 168,000 204,000 Note: Operating Expense includes $20,000 and $5,000 of depreciation expense for Palm and Starr respectively. REQUIRED: Prepare Parent Company's Equity-Method Journal Entries to record the operating results of the subsidiary and any entry necessary to record depreciation and/or amortization of the Subsidiary's Net Assets. Note that with respect to Building Depreciation 1/2 is COGS and 1/2 is charged to operating expense. Inventory, Machinery and Patent amortization is 100% COGS. Also prepare any necessary year end elimination entry or entries. Prepare a consolidation worksheet and prepare a complete set of consolidated financial statements, in good form for 2019 - be sure to include a consolidated statement of cash flows - indirect method