1. Independently compute the owners equity attributable to the noncontrolling interest beginning and ending balances starting with the owners equity of the subsidiary.
2. Independently calculate consolidated net income, controlling interest net income and noncontrolling interest net income.
3. Prepare the C, E, A, D, and I entries and post them to the worksheet.

A parent company acquired its 70% interest in its subsidiary on January 1,2017 . On the acquisition date, the total fair value of the controlling interest and the noncontrolling interest was $280,000 in excess of the book value of the subsidiary's Stockholders' Equity. All of that excess was allocated to a Royalty Agreement, which had a zero book value in the subsidiary's financial statements (i.e., there is no Goodwill). The Royalty Agreement has a 7-year estimated remaining economic life on the acquisition date. Both companies use straight line amortization, with no terminal value. In January 2020, the subsidiary sold Equipment to the parent for a cash price of $200,000. The subsidiary acquired the equipment at a cost of $384,000 and depreciated the equipment over its 10 -year useful life using the straight-line method (no salvage value). The subsidiary had depreciated the equipment for 6 years at the time of sale. The parent retained the depreciation policy of the subsidiary and depreciated the equipment over its remaining 4-year useful life. Following are pre-consolidation financial statements of the parent and its subsidiary for the year ended December 31, 2022. The parent uses the equity method to account for its Equity Investment