Consolidation worksheet for gain on constructive retirement of subsidiary's debt with no AAP Cost method Assume that Parent company acquires a 72% interest in its Subsidiary on January 1, 2015. On the date of acquisition, the fair value of the 75 percent controlling interest was 600,000 and the fair value of the 25 percent noncontrolling interest was $200,000. On January 1, 2015, the book value of not assets equaled $500,000 and the fair value of the keliable not assess equaled the book value of identifiable net assets ie, there was no MAP or Goodwill. On January 1, 2015, the retained earnings of the subsidiary was $150,000. On December 31, 2016, the Subsidiary company and $750,000 fan fi parcem, from your bench In an allied company for $755,000. The bords pay interes anualy on December 31, and the bond premium is amortized using the right in mod. This results in annual band-payables premium monivation equal to $3,000 per year. The flowing schedule provide the benchman din hude from the initial issue dat Year Dec. 31, 2016 Dec. 31, 2017 Ds. $1.2318 Da..$1.2319 Dec 31,2120 Dec. 31, 2021 Cash Payment Amortation of Premium Interest Expense Carrying Amount 46 4 5,000 45,000 3.000 242,000 42:330 42030 42,000 42000 www 753000 750,000 On December 31, 2018, the Parent paid $735,000 to purchase all of the outstanding Subsidiary company bonds. The hard discount is ammonized using the straight-line matched, which results in annual land-in descant mantination equal to $5,000 per year. The following schedule provides the lord-amortization schedule for the d Investment Year Cash Payment Amortization of Discount interest Income Carrying mount D31,301 571200 Dec. 31, 2019 Dec. 31,7 Da..31.2321 $15,000 15000 . $5.000 5300 5.000 500,000 50,000 53.000 240,000 M 200 The parent uses the cost method of pre consolidadon investment bookcoping The Parent and the Subsidiary report the following financial statements for the year ended December 31, 2019: Parent Sy Incomment Belance sheet 5 500000 18000 Logo A Cash 300,000 1930 Am Credity at others 1, www Tod 5,000 Tond oyment Parent Subsidiary ASARAG 1823000 #31,000 532,000 1001000 1,709 131331 b +42000 T 1842,000 $48 $104,000 as word ni State of min simp $35 $771000 www.in $76,000 $275,00 431,000 431,000 Nere 311200 D p terr Tringing 51.140,000 3344:20 Comm 1,400,000 172,000 633000 172,000 2009 531000 1141001 344,001 28001 Provide the consolidacion entries and prepare a consolidar un workshes for the year ended December 11, 2018.