McKinney Enterprises acquired Pottsboro, Inc. on January 1, 2019. The $440,000 excess of cost over book value of Pottsboros net assets was partly attributable to a patent undervalued by $210,000. The patent has a 10-year life. There were no other FMV Adjustments than the patent. The parent uses the equity method of pre-consolidation Equity investment bookkeeping. The separate financial statements of the two companies for 2022 are presented below. REQUIREMENTS ARE AT THE BOTTOM OF THE WORKSHEET!!!
	McKinney Enterprises Yr Ended 12/31/22	Pottsboro, Inc. Yr Ended 12/31/22
Sales revenue	$ 3,100,000	$ 440,000
Cost of goods sold	(1,580,000)	(252,000)
Gross profit	1,520,000	188,000
Operating expenses	(485,000)	(68,000)
Equity income	99,000	-
Net Income	$ 1,134,000	$ 120,000
Retained Earnings, 1/1/22	$ 1,700,000	$ 750,000
Net income	1,134,000	120,000
Dividends	(65,000)	(42,000)
Retained Earnings, 12/31/22	$ 2,769,000	$ 828,000
Cash and receivables	$ 535,000	$ 501,000
Inventory	758,000	840,000
Equity investment	1,844,160
Property, plant & equipment (Net)	4,558,840	1,205,480
Total Assets	$ 7,696,000	$ 2,546,480
Accounts payable	$ 265,000	$ 182,430
Accrued liabilities	458,000	272,390
Notes payable	780,000	603,500
Common stock	460,000	204,540
Additional paid-in capital	2,964,000	455,620
Retained Earnings, 12/31/22	2,769,000	828,000
Total Liabilities and Equities	$ 7,696,000	$ 2,546,480
Required:
a.) Prepard all the Equity Accounting Entries (in good form) of the Parent for 2022 including a carryforward worksheet
b.) Prepare the General ledger T-account of the Equity Investment of the Parent Based upon entries in (a) and the ending balance in the above TB also calculate the beginning balance of the equity investment account in the T-Account.
b.) Prepare all necessary consolidation entries for 2022 consolidated financial statements.
c.) Prepare the Consolidated worksheet
d) Prepare in good form the Consolidated financial statements except cash flow