Following are separate financial statements of Michael Company and Aaron Company as of December $31,2024($credit balances indicated by parentheses$).$ Michael acquired all of Aaron$$s outstanding voting stock on January $1,2020,$ by issuing $20,000$ shares of its own $$1$ par common stock. On the acquisition date, Michael Company$$s stock actively traded at $$33\mathrm{.}50$ per share.

Accounts Michael Company $12/31/24$ Aaron Company $12/31/24$

Revenues $ $(634,000)$ $ $(508,500)$

Cost of goods sold $282,000209,250$

Amortization expense $127,800125,000$

Dividend income $(5,000)0$

Net income $ $(229,200)$ $ $(174,250)$

Retained earnings, $1/1/24$ $ $(892,000)$ $ $(761,000)$

Net income $($above$)(229,200)(174,250)$

Dividends declared $90,0005,000$

Retained earnings, $12/31/24$ $ $(1,031,200)$ $ $(930,250)$

Cash $ $209,000$ $ $22,700$

Receivables $430,000308,000$

Inventory $571,000360,000$

Investment in Aaron Company $670,0000$

Copyrights $476,000425,000$

Royalty agreements $997,000424,000$

Total assets $ $3,353,000$ $ $1,539,700$

Liabilities $ $(1,221,800)$ $ $(479,450)$

Preferred stock $(300,000)0$

Common stock $(500,000)(100,000)$

Additional paid$-$in capital $(300,000)(30,000)$

Retained earnings, $12/31/24(1,031,200)(930,250)$

Total liabilities and equity $ $(3,353,000)$ $ $(1,539,700)$

On the date of acquisition, Aaron reported retained earnings of $$430,000$ and a total book value of $$560,000.$ At that time, its royalty agreements were undervalued by $$60,000.$ This intangible was assumed to have a six$-$year remaining life with no residual value. Additionally, Aaron owned a trademark with a fair value of $$50,000$ and a $10-$year remaining life that was not reflected on its books. Aaron declared and paid dividends in the same period.

Required:

Using the preceding information, prepare a consolidation worksheet for these two companies as of December $31,2024.$

Assuming that Michael applied the equity method to this investment, what would the Equity in Subsidiary Earnings, Retained Earnings, and Investment account balances be on the parent's individual financial statements?$\backslash$table$[[$MICHAEL COMPANY AND CONSOLIDATED SUBSIDIARY$],[$Consolidation Worksheet$],[$For Year Ending December $31,2024],[$Accounts$,$Michael,Aaron,Consolidation Entries,$\backslash$table$[[$Consolidated$],[$Totals$]]],[$Debit$,$Credit$],[$Revenues$,$$$,(634,000),$$$,(508,500),,,],[$Cost of goods sold,,$282,000,,209,250,,,],[$Amortization expense,,$127,800,,125,000,,,],[$Dividend income,,$(5,000),,0,,,],[$Net income,$$,(229,200),$$$,(174,250),,,],[$Retained earning, $1/1/24($Michael$),,(892,000),,0,,,],[$Retained earning, $1/1/24($Aaron$),,0,,(761,000),,,],[$Net income $($above$),,(229,200),,(174,250),,,],[$Dividends declared,,$90,000,,5,000,,,],[$Retained earnings, $\frac{12}{31}\frac{?}{24},$$$,(1,031,200),$$$,(930,250),,,],[$Cash$,$$$,209,000,$$$,22,700,,,],[$Receivables$,,430,000,,308,000,,,],[$Inventory$,,571,000,,360,000,,,],[$Investment in Aaron Company,,$670,000,,0,,,],[$Copyrights$,,476,000,,425,000,,,],[$Royalty agreements,,$997,000,,424,000,,,],[$Trademark$,,0,,0,,,],[$Total assets,$$,3,353,000,$$$,1,539,700,,,],[$Liabilities$,$$$,(1,221,800),$$$,(479,450),,,],[$Preferred stock,,$(300,000),,0,,,],[$Common stock,,$(500,000),,(100,000),,,],[$Additional paid$-$in capital,,$(300,000),,(30,000),,,],[$Retained earnings, $12/31/24($above$),,(1,031,200),,(930,250),,,],[$Total liabilities and equity,$$,(3,353,000),$$$,(1,539,700),$$$,$$$,]]$