Consolidation at the end of the first year subsequent to date of acquisition-Equity method (purchase price equals book value) Assume that a parent company acquires its subsidiary on January 1, 2016, by exchanging 40,000 shares of its $1 par value Common Stock, with a market value on the acquisition date of $28 per share, for all of the outstanding voting shares of the acquiree. You have been charged with preparing the consolidation of these two companies at the end of the first year. On the acquisition date, all of the subsidiary's assets and liabilities had fair values equaling their book values. The parent uses the equity method of preconsolidation Equity investment bookkeeping. Following are financial statements of the parent and its subsidiary for the year ended December 31 , 2016. a. Prepare the journal entry to record the acquisition of the subsidiary. b. Show the computations to yield the Equity Investment reported by the parent in the amount of $1,319,920 Do not use negative signs with your answers. c. Prepare the consolidation entries for the year ended December 31, 2016. d. Prepare the consolidated spreadsheet for the year ended December 31, 2016. Use negative signs with answers in the Consolidated column for reductions (Cost of goods sold, Operating expenses and Dividends). Please answer all parts of the question. Consolidation at the end of the first year subsequent to date of acquisition-Equity method (purchase price equals book value) Assume that a parent company acquires its subsidiary on January 1, 2016, by exchanging 40,000 shares of its $1 par value Common Stock, with a market value on the acquisition date of $28 per share, for all of the outstanding voting shares of the acquiree. You have been charged with preparing the consolidation of these two companies at the end of the first year. On the acquisition date, all of the subsidiary's assets and liabilities had fair values equaling their book values. The parent uses the equity method of preconsolidation Equity investment bookkeeping. Following are financial statements of the parent and its subsidiary for the year ended December 31 , 2016. a. Prepare the journal entry to record the acquisition of the subsidiary. b. Show the computations to yield the Equity Investment reported by the parent in the amount of $1,319,920 Do not use negative signs with your answers. c. Prepare the consolidation entries for the year ended December 31, 2016. d. Prepare the consolidated spreadsheet for the year ended December 31, 2016. Use negative signs with answers in the Consolidated column for reductions (Cost of goods sold, Operating expenses and Dividends). Please answer all parts of the