Consolidation several years subsequent to date of acquisition-Equity method that a parent company acquired a subsidiary on January 1, 2014. The purchase price was $785,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excar was signed to the following[A] Gestell Original Useful A Amount Life $785.000 The IA assets with define uneful lives have been depreciated or amortized as part of the parents preconsolidation equity method accounting The Goodwill asset has been tested amaty for imparment and hund be impart. The financial statements of the parent and its subsidiary for the year ended December 31, 2016 are alw 15150 C (2004200 4700 676200 Land 213,400 A 24000 127200 30100 100 300 20 121000 24.000 400 210000 Cammer stak 121100 Compute the Equity investment balance as of january 1, 2016 10 1417 a. Compute the Equity Investment balance as of January 1, 2016. 50 b. Show the computation to yield the $159,150 equity income reported by the parent for the year ended December 31, 2016. Do not use negative signs with your answers. Subsidiary net income Less: Amortization Less: Depreciation $ 0 D 0 c. Show the computation to yield the $1,650,550 Equity Investment account balance reported by the parent at December 31, 2016. Do not use negative signs with your answers. Equity investment at 1/1/16 $ 0 Plus Less 0 Equity investment at 12/31/16 S 0 d. Prepare the consolidation entries for the year ended December 31, 2016. Consolidation Journal Description [C] Equity investment [E] Common Stock APIC Debit Credit 0 0 0 0 0 0 0 0 0 0 0 0 [A] PPE, net 0 0 Patent O Licenses O 0 0 0 0 0 [D] 0 0 0 0 0 Patent Licenses 0 0 0 0 e. Prepare the consolidated spreadsheet for the year ended December 31, 2016. Use negative signs with answers in the Consolidated column for Cost of goods sold. Operating expenses and Dividends Consolidation Worksheet Parent Subsidiary Debit Credit Income statement. Sales $4,802,000 $1,338,300 Cast of goods sold (3,457,300) (784,700) Gross profit 1,344,700 553,600 Consolidated $ 0 e. Prepare the consolidated spreadsheet for the year ended December 31, 2016. Use negative signs with answers in the Consolidated column for Cost of goods sold. Operating expenses and I Consolidation Worksheet Subsidiary Parent Debit Credit Consolidated Income statement Sales $4,802,000 $1,338,300 $ 0 Cost of goods sold (3,457,300) (784,700) 0 Gross profit 1,344,700 553,600 0 Equity income 159,150 [C] 0 0 Operating expenses (720,300) (340,200) [D] 0 0 Net income $783,550 $213,400 $ 0 Statement of retained earnings BOY retained earnings $1,694,700 $676,200 [E] 0 $ 0 Net income 783,550 213,400 Dividends (394,000) (58,000) Ending retained earnings $2,084,250 $831,600 0 [C] 0 S 0 Balance sheet Assets Cash $719,600 $337,400 Accounts receivable Inventory 1,229,200 303,800 1,624,000 389,900 Equity investment 1,650,550 PPE, net Patent Licenses Goodwill M 0 oooo 0 [g] 0 [E] 0 [A] 2,923,200 721,000 [A] 3333 [A] [A] [A] OOOO 0 [D] 0 0 [D] 0 0 0 [D] 0 0 0 Accounts payable Accrued liabilities Liabilities and equity $8,146,550 $1,752,100 $702,800 $124,600 835,800 163,100 $ 0 0 Long-term liabilities: 2,100,000 436,100 0 Common stock APIC Retained earnings 527,100 1,896,600 2,084,250 87,500 [E] $ 109,200 [E] $ 831,600 0 0 0 0 0 $8,146,550 $1,752,100 $ 0 $ 0 $ 0 Please answer all parts of the question.