Cost method I accounts were $16.500. On the LOU4L Prepare consolidation spreadsheet for continui sale of inventory-Cast A c ompany aguired 100 percent of the stock of a subsidiary company S5600 O this date the balances of the subsidiary's stockholders' equity Stocks. Additional Paid-in Capital, 300, and Retained Earningsins the date the excess was assigned to the following AAP assets: Original Amount Org $140,000 70,000 56,000 Property, plant and equipment (PPE), net. Customer list Royalty agreement Goodwill 84.000 $350,000 been found to be im i ve compiled the The Goodwill asset has been tested annually for impairment, and has not been found to Assume the parent company sells inventory to its wholly owned subsidiary. The sm mately, sells the inventory to customers outside of the consolidated group. You have com lowing data for the years ending 2018 and 2019: Inventory Sales Gross Profit Remaining in Unsold Inventory $5,600 $7,350 Receivable (Payable $42.000 $19.500 2019 2018.. $28,000 $10.500 The inventory not remainine at the end of a given year is sold to unafiliated entities outside consolidated group during the next year. The parent uses the cost method of pre-consolidation Investment bookkeeping. The financial statements of the parent and its subsidiary for the year December 31, 2019 follow: Parent Subsidiary Parent Subsidiary 60.000 (338.000 Income statement: Sales Cost of goods sold Gross profit.... Operating expenses............... Income foss) from subsidiary... . Net income... 224,000 $3.045.000 (2,135.000) 910,000 (581.000) 10,500 $ 339,500 Balance sheet: Assets Cash..... Accounts receivable.. Inventory..... Equity Investment... PPE, net $ 455,000 392,000 595,000 560,000 2,800,000 $4,802,000 $175,000 126,000 175,000 (140,000) $ 84,000 Total assets .. 294,000 $770,000 Retained earnings statement: Beginning retained earnings........ Net income... Dividends.................... Ending retained earnings ......... $1,400.000 339,500 (87,500) $1,652,000 $283,500 84,000 (10,500) $357.000 Liabilities and stockholders' equity Accounts payable Other current liables. Long-term liabilities Common stock.. . APIC.. Retained oamings . . Total Earls and equity....... $ 245,000 280,000 4,750,000 430,000 385,000 1,652.000 $4,802,000 $ 70,000 87,500 182,000 35,000 38,500 357.000 $770,000 a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAP) through December 31, 2019. b. Compute the amount of the beginning of year I ADJadjustment necessary for the consolidation of the financial statements for the year ended December 31, 2019. C. Complete the consolidating entries according to the C-E-A-D-I sequence and complete the consolidation worksheet. Cost method I accounts were $16.500. On the LOU4L Prepare consolidation spreadsheet for continui sale of inventory-Cast A c ompany aguired 100 percent of the stock of a subsidiary company S5600 O this date the balances of the subsidiary's stockholders' equity Stocks. Additional Paid-in Capital, 300, and Retained Earningsins the date the excess was assigned to the following AAP assets: Original Amount Org $140,000 70,000 56,000 Property, plant and equipment (PPE), net. Customer list Royalty agreement Goodwill 84.000 $350,000 been found to be im i ve compiled the The Goodwill asset has been tested annually for impairment, and has not been found to Assume the parent company sells inventory to its wholly owned subsidiary. The sm mately, sells the inventory to customers outside of the consolidated group. You have com lowing data for the years ending 2018 and 2019: Inventory Sales Gross Profit Remaining in Unsold Inventory $5,600 $7,350 Receivable (Payable $42.000 $19.500 2019 2018.. $28,000 $10.500 The inventory not remainine at the end of a given year is sold to unafiliated entities outside consolidated group during the next year. The parent uses the cost method of pre-consolidation Investment bookkeeping. The financial statements of the parent and its subsidiary for the year December 31, 2019 follow: Parent Subsidiary Parent Subsidiary 60.000 (338.000 Income statement: Sales Cost of goods sold Gross profit.... Operating expenses............... Income foss) from subsidiary... . Net income... 224,000 $3.045.000 (2,135.000) 910,000 (581.000) 10,500 $ 339,500 Balance sheet: Assets Cash..... Accounts receivable.. Inventory..... Equity Investment... PPE, net $ 455,000 392,000 595,000 560,000 2,800,000 $4,802,000 $175,000 126,000 175,000 (140,000) $ 84,000 Total assets .. 294,000 $770,000 Retained earnings statement: Beginning retained earnings........ Net income... Dividends.................... Ending retained earnings ......... $1,400.000 339,500 (87,500) $1,652,000 $283,500 84,000 (10,500) $357.000 Liabilities and stockholders' equity Accounts payable Other current liables. Long-term liabilities Common stock.. . APIC.. Retained oamings . . Total Earls and equity....... $ 245,000 280,000 4,750,000 430,000 385,000 1,652.000 $4,802,000 $ 70,000 87,500 182,000 35,000 38,500 357.000 $770,000 a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAP) through December 31, 2019. b. Compute the amount of the beginning of year I ADJadjustment necessary for the consolidation of the financial statements for the year ended December 31, 2019. C. Complete the consolidating entries according to the C-E-A-D-I sequence and complete the consolidation worksheet