Carlton Company acquires an 80% interest in its subsidiary for a purchase price of $978,600. The excess of the purchase price over the book value of the subsidiarys Stockholders Equity is allocated to a building (in PPE, net) that is worth $150,000 more than its book value, an unrecorded Patent that the parent valued at $80,000, and Goodwill of $200,000, 80% of which is allocated to the parent.

The parent and the subsidiary report the following balance sheets on the acquisition date:

Carlton

Subsidiary

Cash $1,820,530

$206,840

Accounts receivable 1,415,870

275,780

Inventory 2,001,450

301,190

Equity Investment 978,600

PPE, Net 6,008,510

612,460

Total Assets $12,224,960

$1,396,270

Current Liabilities $915,780

$ 284,740

Long-term Liabilities 3,485,210

318,280

Common Stock 1,232,540

64,150

APIC 2,842,750

129,630

Retained Earnings 3,748,680

599,470

Prepare the consolidation journal entries on the acquisition date.