B. Compute remaining portion of deffered gain at 1/1/2016.

C. Show the computation to yield the $319,220 of Income (Loss) from subsidiary reported by the parent for the year ended 12/31/2016

52. Prepare consolidation spreadsheet for intercompany sale of equipment-Equity method Assume that a parent company acquired its subsidiary on January 1, 2013, at a purchase price that was S600,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date Of that excess, $100,000 was assigned to a Patent, and $200,000 to an unrecorded Customer List owned by the subsidiary. The Patent asset is being depreciated over its 10-year legal life and the Customer List is being amortized over a 5-year period. Amortization is computed on a straight-line basis with no salvage value. The remaining $300,000 of the purchase price was assigned to Goodwill. In January 2015, the parent sold Equipment to its wholly owned subsidiary for a cash price of $150,000. The parent had acquired the equipment at a cost of $175.000 and depreciated the equipment over its 10-year useful life using the straight-line method (no salvage value). The parent had depreci- ated the equipment for 5 years at the time of sale. The subsidiary retained the depreciation policy of the parent and depreciated the equipment over its remaining 5-year useful life. Following are financial statements of the parent and its subsidiary for the year ended December 31, 2016. The parent uses the equity method to account for its Equity Investment. The Customer List and Patent assets were amortized as part of the parent's equity method accounting