Comprehensive consolidation subsequent to date of acquisition - Equity method, noncontrolling interest, AAP computation, goodwill, upstream and downstream intercompany inventory profits, downstream intercompany depreciable asset gain A parent company acquired 80% of the stock of a subsidiary company on January 1,2018 , for $250,380. On this date, the balances of the subsidiary's stockholders' equity accounts were Common Stock. $156,000, and Retained Earnings, $31,200. On January 1,2018 , the market value for the 20% of shares not purchased by the parent was $61,620. On January 1, 2018, the subsidiary's recorded book values were equal to fair values for all items except four: (1) accounts receivable had a book value of $39,000 and a fair value of $33,800, (2) buildings and equipment, net had a book value of $65,000 and a fair value of $88,400, (3) the licenses intangible asset had a book value of $45,500 and a fair value of $100,100, and (4) notes payable had a book value of $26,000 and a fair value of $18,200. Both companies use the FIFO inventory method and sell all of their inventories at least once per year. The net balance of accounts receivables are collected in the following year. On the acquisition date, the subsidiary's buildings and equipment, net had a remaining useful life of 6 years, licenses had a remaining useful life of 7 years, and notes payable had a remaining term of 4 years. On January 1,2021, the parent sold a building to the subsidiary for $104,000. On this date, the building was carried on the parent's books (net of accumulated depreciation) at $84,500. Both companies estimated that the building has a remaining life of 6 years on the intercompany sale date, with no salvage value: Each company routinely sells merchandise to the other company, with a profit margin of 25 percent of selling price (regardless of the direction of the sale). During 2022, intercompany sales amount to $19,500, of which $10,400 of merchandise remains in the ending inventory of the parent. On December 31,2022,$5,200 of these intercompany sales remained unpaid. Additionally, the subsidiary's December 31,2021 inventory includes $15,600 of merchandise purchased in the preceding year from the parent. During 2021, intercompany sales amount to $26,000, and on December 31,2021,$7,800 of these intercompany sales remained unpaid. The parent accounts for its Equity Investment in the subsidiary using the equity method. Unconfirmed profits are allocated pro-rata. The pre-consolidation financial statements for the two companies for the year ended December 31,2022 , are provided below: a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAP), the controlling interest AAP, and the noncontrolling interest AAP. b. Calculate and organize the profits and losses on intercompany transactions and balances. c. Compute the pre-consolidation Equity Investment account beginning and ending balances starting with the stockholders' equity of the subsidiary. d. Reconstruct the activity in the parent's pre-consolidation Equity Investment T-account for the year of consolidation. e. Independently compute the owners' equity attributable to the noncontrolling interest beginning and ending balances starting with the owners' equity of the subsidiary. f. Independently calculate consolidated net income, controlling interest net income, and noncontrolling interest net income. g. Complete the consolidating entries according to the C-E-A-D-I sequence and complete the consolidation worksheet. Comprehensive consolidation subsequent to date of acquisition - Equity method, noncontrolling interest, AAP computation, goodwill, upstream and downstream intercompany inventory profits, downstream intercompany depreciable asset gain A parent company acquired 80% of the stock of a subsidiary company on January 1,2018 , for $250,380. On this date, the balances of the subsidiary's stockholders' equity accounts were Common Stock. $156,000, and Retained Earnings, $31,200. On January 1,2018 , the market value for the 20% of shares not purchased by the parent was $61,620. On January 1, 2018, the subsidiary's recorded book values were equal to fair values for all items except four: (1) accounts receivable had a book value of $39,000 and a fair value of $33,800, (2) buildings and equipment, net had a book value of $65,000 and a fair value of $88,400, (3) the licenses intangible asset had a book value of $45,500 and a fair value of $100,100, and (4) notes payable had a book value of $26,000 and a fair value of $18,200. Both companies use the FIFO inventory method and sell all of their inventories at least once per year. The net balance of accounts receivables are collected in the following year. On the acquisition date, the subsidiary's buildings and equipment, net had a remaining useful life of 6 years, licenses had a remaining useful life of 7 years, and notes payable had a remaining term of 4 years. On January 1,2021, the parent sold a building to the subsidiary for $104,000. On this date, the building was carried on the parent's books (net of accumulated depreciation) at $84,500. Both companies estimated that the building has a remaining life of 6 years on the intercompany sale date, with no salvage value: Each company routinely sells merchandise to the other company, with a profit margin of 25 percent of selling price (regardless of the direction of the sale). During 2022, intercompany sales amount to $19,500, of which $10,400 of merchandise remains in the ending inventory of the parent. On December 31,2022,$5,200 of these intercompany sales remained unpaid. Additionally, the subsidiary's December 31,2021 inventory includes $15,600 of merchandise purchased in the preceding year from the parent. During 2021, intercompany sales amount to $26,000, and on December 31,2021,$7,800 of these intercompany sales remained unpaid. The parent accounts for its Equity Investment in the subsidiary using the equity method. Unconfirmed profits are allocated pro-rata. The pre-consolidation financial statements for the two companies for the year ended December 31,2022 , are provided below: a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAP), the controlling interest AAP, and the noncontrolling interest AAP. b. Calculate and organize the profits and losses on intercompany transactions and balances. c. Compute the pre-consolidation Equity Investment account beginning and ending balances starting with the stockholders' equity of the subsidiary. d. Reconstruct the activity in the parent's pre-consolidation Equity Investment T-account for the year of consolidation. e. Independently compute the owners' equity attributable to the noncontrolling interest beginning and ending balances starting with the owners' equity of the subsidiary. f. Independently calculate consolidated net income, controlling interest net income, and noncontrolling interest net income. g. Complete the consolidating entries according to the C-E-A-D-I sequence and complete the consolidation worksheet