help with b and c

Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and AAP Assume that, on January 1, 2009, a parent company acquired an 80% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was $500,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess to the following (Al assets: [A] Asset Initial Fair Value Useful Life (years) Initial Useful [A] Asset Fair Value Life (years) Property, plant and equipment (PPE), net $105,000 Customer list 145,000 Goodwill 250,000 Indefinite $500,000 I 10 10 80% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following financial statements at December 31, 2013: Parent Subsidiary Income statement: Sales Cost of goods sold Gross profit Income (loss) from subsidiary Operating expenses Net income Parent Subsidiary Balance sheet: $7,330,000 $1,872,000 Assets (5,131,000) (1,122,300) Cash 2,199,000 749,700 Accounts receivable 190,696 Inventory (1,392,700) (486,330) Equity Investment $996,996 263,370 Property, plant and equipment (PPE), net $412,513 $133,011 938,240 433,956 1,422,020 557,409 1,476,871 5,374,356 1,280,669 $9,624,000 $2,405,045 Statement of retained earnings: BOY retained earnings $3,682,592 $966,425 Liabilities and stockholders' equity Net income 996,996 263,370 Current liabilities Dividends (199,159) (39,281) Long-term liabilities EOY retained earnings $4,480,429 $1,190,514 Common stock APIC Retained earnings $1,053,321 $433,956 2,000,000 500,000 1,198,455 124,700 891,795 155,875 4,480,429 1,190,514 $9,624,000 $2,405,045 Unamortized 1/1/2012 Unamortized 1/1/2011 84,000 116,000 250,000 450,000 2010 Amortization 10,500 14,500 0 25,000 73,500 2011 Amortization 10,500 14,500 0 25,000 2012 Amortization 10,500 14,500 101,500 250,000 0 425,000 25,000 Note: Do not use negative signs with any of your answers below. Unamortized Unamortized AAP 2009 1/1/2009 Amortization 1/1/2010 Property, plant and equipment (PPE), net 105,000 10,500 95,000 Customer list 145,000 14,500 130,500 Goodwill 250,000 0 0 250,000 500,000 25,000 475,000 Parent Property, plant and equipment (PPE), net 84,000 8,400 75,600 Customer list 116,000 11,600 104,400 Goodwill 200,000 0 200,000 400,000 380,000 Subsidiary: Property, plant and equipment (PPE), net 21,000 2,100 18,900 Customer list 29,000 2,900 26,100 Goodwill 50,000 0 50,000 110,000 5,000 95,000 8,400 11,600 67,200 92,800 8,400 11,600 8,400 11,600 58,800 81,200 200,000 340,000 0 0 0 20,000 200,000 360,000 20,000 20,000 20,000 2,100 2,900 2,100 2,900 16,800 23,200 50,000 90,000 14,700 20,300 50,000 85,000 2,100 2.900 0 5,000 0 0 5,000 5,000 b. Calculate and organize the profits and losses on intercompany transactions and balances. Downstream Upstream jan. 1, 2013 Intercompany transaction 0 0 Dec. 31, 2013 No intercompany transactions - 0 0 8/14/2021 Chapter 5 Homework C. Compute the pre-consolidation Equity Investment account beginning and ending balances starting with the stockholde subsidiary Round answers to the nearest whole number. Equity investment at 1/1/13: Common stock 0 APIC 0 Retained earnings Unamortized AAP 0 0 0 0 Equity investment at 12/31/13: Common stock APIC Retained earnings Unamortized AAP 0 0 0 0