Inferring consolidation entries from consolidated financial statements-Cost method Assume a parent company acquired a tubulary on January, 2015. The purchase price was 1.100.000 in excess of the subsidiary book of Stockholders to the cition Gate that excess was assigned to the following assets TAI Aset Original Amount Original file operty.com COD Patient 0.000 tayan GoW 500.000 1.100.000 The parent companyies the cost method of pre-consolidation Equity Inwestment bookkeeping. The Goodwill asset has been tested annually for impairment and has not been found to be paired. Selected accounts from the parents, and consolidated financial statements for the year ended December 31, 2019. an as follow Parent Subsidiary Consolidated Income statement Sales 1 SOKO 150.000 150.000 Costo 2000 00.000 200.000 0.0001 Grosso X000000 700000 1.700.000 Inven 100.000 (400.000 300 (LWOOCO 11.00 100 000 310000 Statement of retained earnings Nov.ee 2.000.000 000 Net 1.700.000 200.000 1000 Dvds 00000011100 200.000 Ending and 100 000 000 S5.000 Balance sheet As ca 300.000 0 000 220.000 Accounset 1.200.000 330.000 0.000 ventory 1.000.000 470.000 2.150.000 tot 16000 The parent company uses the cost method of pee consolidation Equty investment booking The Goodwill has been tested annually for impahan be found to be more Selected accounts from the parent subsidiary and consoldated fancial statements for the year ended December 31, 2019 are as follows Parent Subdiary Consolidated income statement Sales 37.500.000 8.650.000 150.000 Costa del 00000000 Groht SOLO 200.000 went income 100.00 Operation 400.000 SCO 0.000 SL000 3200000 34110.000 Statement of retained in BOY and are 2.000.000 140.00 234.000 Netinu 202000 2000 110,000 Dividende 100.000 100.000 000.000 Ending retained 31.500.000 1.000.000 550.000 Nance sheet Ae (Cash 100000 120.000 1.270.000 Accountable 0.000 300.000 1.440.000 Inventory 1.200.000 200.000 fouity vetme 70.000 Property punten 000 10000 150.000 Point 210.000 Good 30.000 111.660.000 100.000 112.00 trabate and coding Accountabile 900.000 150.000 1,050.000 A. T1000 340,000 1.CO Lantern 400000 550.000 450.000 Common stoc 220.000 720.000 AMIC 1.200.000 150.000 Berandamine 1.500.000 1.000.000 350.000 110.000 Common ARC Recanadens Y20.000 11,000 1.200.000 150.000 3.500.000 1.000.000 171.000.000 12.000 720,000 1,200.00 350.000 120.000 a for the year ended December 31, 2019, explain how the parent's pre-consolidation investment income of $100,000 was determined under the cost method investment incone equals the dividends received from the websidary Dunder the cost method investment income equals equity income minus dividends received from the subsidiary Under the cost method investment income equals equity income plus dividends received from the subsidiary h. Explain how the parent's December , 2019 pre consolidation Equity Investment balance of $1.760,000 was determined Under the cost method, it is the original purchase price plus dividends received by the subuduyunce acquisition Under the cost method, it is the original purchase price for the subsidiary Under the cost method, it is the original purchase price plus equity income and minus dividends received by the subsidiary since acquisition c. For the year ended December 31, 2019. reconcile the parent company's pre-consolidation net income of $1,700,000 to the consolidated balance of 1.810,000 Do not use negative signs with your answers Parere come to Deducto subscary . De Parunt income quity metho 1 0 . 5 0 d. What was the subsidiary's retained coming balance on the acquisition date? You should assume the Common Stock and API have not changed since the accustion date int you will need to use an account that does not change after the acquisition date) SD C e. Why aren't the Stockholders Equity accounts of the subsidiary reflected in the consolidated balance sheet under the cost method, it is the original purchase price for the subsidiary under the cost method, it is the original purchase price plus equity income and it dividends received by the subsidury since action For the year ended December 31, 2012, reconcile the parent company's pre.consolidation net income of $1,700,000 to the consolidated balance of 51,110.000 Do not use negative signs with your answers 10 Deductibildurvidens 0 M 0 0 comcity mathon 5 0 d What was the subsidiarys retained earnings balance on the acquisition date You should assume the common stock and ADC ha cot changed since the acquisition de Chine you will end to use an account that does not sange after the acquisition date 50 t. Why aren't the Stockholdes Equity accounts of the subsidiary reflected in the consolidated balance sheet? The subsidiary's stockholders' equity is not held by a party outside of the economik entity represented in the consolidated financial statements and, as a result should not be included in the consolidated stockholders equity The subsidiary's stockholders equity is held by a party outside of the economic entity represented in the consolidated financial statements and as a result should not be included in the consolidated stockholders equity The subsidiary's stockholders' equity is beld by a party outside of the economic entity represented in the consolidated financial statements and, as a result, s reflected in the Equity investment account on the consolidated balance sheet rather than be included in the consolidated stockholders' equity Provide the consolidation entries for the year ending December 31, 2019 Consolidation Journal Description Deble Credit TADII nestent income Didende . . 0 G C 0 G Search or type URL CC Why went the stockholders Luty counts of the cared the contenhet The subularys stockholders equity is the type of the economic and represents the concludes the consolidated scholders The stars stockholderwys held by a party outside of the economic ray represented the forandrement au solette deste con dated story Othetidarys sindholdenegy held by a party orice of the econoncenty pisated in the connoided to statements and auto set in the fourtynosi account on the contested balance sheet rather than be included in the conseguit Prone the condition entries for the young December 31, 2015 Contijo IADI 0 Dude . 3 1 = 0 3 IA) 0 . 3 0 . o 3 DI Please all parts of the EDUnce sneather than in the concludated stockholders et Provide the consolidation entries for the year ending December 2010 Consolidation anal Description Det Credit TADT start income Oldende 3 ICE 0 IE) Com ARC . . 0 IA 0 . ID . . aten Please answer all parts of the question Check Finisho Previous Save Answers