Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and AAP Assume, on January 1, 2019, a parent company acquired an 80% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was $690,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess fair value to the following [A] assets: Initial Useful [A] Asset Fair Value Life (years) Property, plant and equipment (PPE), net $276,000 20 Patent 15,000 10 Customer list 69,000 Goodwill 230,000 Indefinite $690,000 80% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following financial statements at December 31, 2022: Parent Subsidiary Parent Subsidiary Income statement: Balance sheet: Sales $9,545,000 $1,380,000 Cash $460,000 $327,750 Cost of goods sold (7,245,000) (690,000) Accounts receivable 690,000 287,500 Gross profit 2,300,000 690,000 Inventory 1,035,000 379,500 Income (loss) from subsidiary 204,240 Equity investment 1,318,360 Operating expenses (1,840,000) (402,500) Property, plant and equipment (PPE), net 2,300,000 1,035,000 Net income $664,240 $287,500 $5,803,360 $2,029,750 Statement of retained earnings: BOY retained earnings $631,120 $672,750 Liabilities and stockholders' equity Net income 664,240 287,000 Current liabilities $1,035,000 $287,500 Dividends (207,000) (57,500) Long-term liabilities 2,300,000 655,500 EOY retained earnings $1,088,360 $902,750 Common stock 460,000 80,500 APIC 920,000 103,500 Retained earnings 1,088,360 902,750a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAP), the controlling interest AAP and the noncontrolling interest AAP. Note: Do not use negative signs with any of your answers below. Unamortized Unamortized Unamortized Unamortized Unamortized AAP 2019 AAP 202 AA 2021 AAP 2022 AA 1/1/2019 Amortization 12/31/2019 Amortization 12/31/2020 Amortization 12/31/2021 Amortization 12/31/2022 100% AAP: Property, plant and equipment (PPE), net Patent Customer list ooooo ooo o o Goodwill Parent (80%): Property, plant and equipment (PPE), net Patent Customer list ooooo Goodwill Subsidiary (20%): Property, plant and equipment (PPE), net Patent Customer list Goodwill b. Calculate and organize the profits and losses on intercompany transactions and balances. Downstream Upstream Jan. 1, 2022 O Dec. 31, 2022 O c. Compute the pre-consolidation Equity Investment account beginning and ending balances starting with the stockholders' equity of the subsidiary. Round answers to the nearest whole number. Equity investment at 1/1/22: 80% x book value of the net assets of subsidiary Equity investment at 12/31/22: 80% x book value of the net assets of subsidiary 0 0d. Reconstruct the activity in the parent's pre-consolidation Equity Investment T-account for the year of consolidation. Round answers to the nearest whole number. Equity Investment Balance at 1/1/22 0 0 Dividends 0 Balance at 12/31/22 0 e. Independently compute the owners' equity attributable to the noncontrolling interest beginning and ending balances starting with the owners' equity of the subsidiary. Round answers to the nearest whole number. Noncontrolling interest at 1/1/22: 20% of book value of the net assets of subsidiary 0 0 NCI Noncontrolling interest at 12/31/22: 20% of book value of the net assets of subsidiary 0 NCI f. Independently calculate consolidated net income, controlling interest net income and noncontrolling interest net income. Round answers to the nearest whole number. . Use negative signs with answers that reduce net income. Consolidated: Parent's stand-alone net income Subsidiary's stand-alone net income ess: 0 Consolidated net income Parent: Parent's stand-alone net income 0 809% of subsidiary's stand-alone net income 0 ess: 0 Consolidated net income attributable to the controlling interest Subsidiary: 20% of subsidiary's stand-alone net income 0 Less: 0 Consolidated net income attributable to the noncontrolling interest 0