Can you help me understand how to do this consolidation. I have been working on this for a while and I am unsure if I am doing it right.

Assume that on January 1, Parent Company (Parent Co) acquires 100% of the common stock of Subsidiary Company (Sub Co) for $800,000. On the acquisition date, Sub Co reports a book value of Stockholders Equity of $320,000. Parent Co is willing to pay the purchase price because the subsidiary owns property, plant and equipment that are worth $150,000 more than the amount at which they are reported on Sub Cos books. In addition, Sub Co owns a customer list that has a fair value equal to $50,000. Both of these identifiable assets are depreciated or amortized over a 10 year period with no salvage value. Any remaining excess purchase price is attributed to corporate synergies that Parent Co expects to realize following the combination of the two companies.

Here is the financial statement info for both the parent and subsidiary:

Consolidation Accounting Parent Co Sub Co 5,700,000 3,990,000 Income Statement Sales Cost of goods sold Gross profit Operating expenses Income from operations Equity income Income before income tax Income tax 480,000 288,000 192,000 106,950 1,710,000 903,800 85,050 806,200 47,200 0 85,050 853,400 179,200 17,850 Net income 674,200 67,200 Statement of Retained Earnings Beginning retained earnings Net income Dividends 2,863,680 674,200 (134,840) 248,000 67,200 (10,080) Ending retained earnings 3,403,040 305,120 Balance Sheet Assets Cash Accounts receivable Inventory Total current assets Property, plant and equipment, net Investment in subsidiary 354,870 729,600 1,105,800 129,440 111,360 143,040 2,190,270 383,840 264,640 5,319,240 837,120 0 Total assets 8,346,630 648,480 819,090 111,360 819,090 111,360 Liabilities & Stockholders' Equity Other liabilities Total current liabilities Notes payable Common stock Retained earnings Additional paid in capital Total stockholders' equity 2,500,000 931,950 3,403,040 692,550 160,000 32,000 305,120 40,000 377,120 5,027,540 Total liab & stockholders' eq 8,346,630 648,480 Consolidation Accounting Parent Co Sub Co 5,700,000 3,990,000 Income Statement Sales Cost of goods sold Gross profit Operating expenses Income from operations Equity income Income before income tax Income tax 480,000 288,000 192,000 106,950 1,710,000 903,800 85,050 806,200 47,200 0 85,050 853,400 179,200 17,850 Net income 674,200 67,200 Statement of Retained Earnings Beginning retained earnings Net income Dividends 2,863,680 674,200 (134,840) 248,000 67,200 (10,080) Ending retained earnings 3,403,040 305,120 Balance Sheet Assets Cash Accounts receivable Inventory Total current assets Property, plant and equipment, net Investment in subsidiary 354,870 729,600 1,105,800 129,440 111,360 143,040 2,190,270 383,840 264,640 5,319,240 837,120 0 Total assets 8,346,630 648,480 819,090 111,360 819,090 111,360 Liabilities & Stockholders' Equity Other liabilities Total current liabilities Notes payable Common stock Retained earnings Additional paid in capital Total stockholders' equity 2,500,000 931,950 3,403,040 692,550 160,000 32,000 305,120 40,000 377,120 5,027,540 Total liab & stockholders' eq 8,346,630 648,480