Facts: Sub Co is a 90% owned subsidiary of Parent Co, acquired for $94,500 cash on July 1, 2016, when Sub's net assets consisted of $100,000 capital stock and $5,000 retained earnings. The cost of Parent Co's 90% interest in Sun was equal to book value and fair value of the interest acquired. Parent Co sells inventory items to Sub Co on a regular basis, and the intercompany transaction data for 2019 are as follows: Sales to Sub Co in 2019 {cost $15,000), selling price $20,000 Unrealized prot in Sub Co's inventory at December 31, 2018 (inventory was sold during 2019} 2,000 Unrealized prot in Sub Co's inventory at December 31, 2019 2,500 Sub Co's accounts payable to Parent Co at December 31, 2019 10,000 At December 31, 2018, Parent Co's investment in subsidiary account had a balance of $128,500. This balance consisted of Parent Co's 90% equity in Sub's $145,000 net assets on that date less $2,000 unrealized prot in Sub's December 31, 2018 inventory. During 2019 Parent Co made the following entries in its records for its investment in Sub: Cash Investment in subsidiary To record dividends from Sub Co ($10,000 * 90%) Investment in subsidiary Income from subsidiary To record income from Sub Co for 2019 as foiiows: Eauitv in Sub Co's net income (330.000 * 90%) $21000