During the year ended December $31,2024,$ Parent Company $($the parent$)$ sold merchandise to Subsidiary Corporation $($a $75\%-$owned subsidiary$)$ for a price of $$31,360,$ at a markup of $28\%$ of cost$.$ Subsidiary sold merchandise acquired from Parent to outsider customers for $$41,800$ during $2024.$ Included in Subsidiary's January $1,2024,$ inventories were goods acquired from Parent at a billed price of $$3,584$ and included in Subsidiary's December $31,2024,$ inventories were goods acquired from Parent at a billed price of $$2,944.$

$($i$)$ Prepare the working paper eliminating entries I$-1,$ I$-2$ and I$-3($in journal entry format$)$ related to the intercompany sale of merchandise for the year ended December $31,2024.$

$($ii$)$ Show how the working paper eliminating entry in part $($i$)$ adjusts cost of goods sold and ending inventory to the correct consolidated balances.

$\backslash$table$[[,$Parent,Subsidiary,Adjustments & Eliminations,Consolidated,$],[,,,$Debits,Credits,$],[$Cost of goods sold,,,,,$],[,,,,,],[$Inventory$,,,,,]]$

$($iii$)$ How $($increase or decrease and the amount$)$ is Parent's $2024$ equity in income of Subsidiary affected by the intercompany sale of merchandise?

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f$9$

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fi$2$