Note: this is just one question. Question G. If you cannot answer each box do not bother.

On January 1, 2020, Wondersome Company acquired a 70% interest in Philmore Company for a purchase price that was $240,000 over the book value of the Philmore's Stockholders' Equity on the acquisition date. Wondersome uses the equity method to account for its investment in Philmore. Wondersome assigned the acquisition-date AAP as follows: AAP Items Initial Fair Useful Life Value (years) PPE, net $90,000 20 Patent 150,000 10 $240,000 Philmore sells inventory to Wondersome (upstream) which includes that Inventory in products that it, ultimately, sells to customers outside of the controlled group. You have compiled the following data for the years ending 2022 and 2023 2022 2023 Transfer price for inventory sale $94,500 $70,000 Cost of goods sold -64,500 -45,000 Gross profit $30,000 $25,000 % inventory remaining 30% 20% Gross profit deferred $9,000 $5,000 EOY Receivable/Payable $32,000 $29,500 Inventory not remaining at the end of the year has been sold outside of the controlled group. The parent and the subsidiary report the following financial statements at December 31, 2023: Income Statement Wondersome Philmore Sales $2,400,000 $602,400 Cost of goods sold -1,580,000 -465,398 Gross Profit 820,000 137,002 Income (loss) from subsidiary 45,851 Operating expenses -711.200 -56,000 Net income $154.651 $81,002 Statement of Retained Earnings Wondersome BOY Retained Earnings $3,500,000 Net income 154,651 Dividends -85,000 EOY Retained Earnings $3.569.651 Philmore $608,000 81,002 -15,000 $674.002 Balance Sheet Wondersome Philmore Assets: Cash Accounts receivable Inventory Equity Investment PPE, net $84,700 113,200 142,100 $450,000 425,000 654,000 803,251 4,438,400 $6.770.651 1,000,002 $1,340,002 Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings $505,900 703,500 402,000 1,589,600 3,569,651 $6.770.651 $99,500 250,000 75,300 241,200 674,002 $1.340.002 g. Complete the consolidating entries according to the C-E-A-D-I sequence. Dr. Cr. [C] [E] [A] [D] [lcogs] [lsales] [lcogs] [lpay] On January 1, 2020, Wondersome Company acquired a 70% interest in Philmore Company for a purchase price that was $240,000 over the book value of the Philmore's Stockholders' Equity on the acquisition date. Wondersome uses the equity method to account for its investment in Philmore. Wondersome assigned the acquisition-date AAP as follows: AAP Items Initial Fair Useful Life Value (years) PPE, net $90,000 20 Patent 150,000 10 $240,000 Philmore sells inventory to Wondersome (upstream) which includes that Inventory in products that it, ultimately, sells to customers outside of the controlled group. You have compiled the following data for the years ending 2022 and 2023 2022 2023 Transfer price for inventory sale $94,500 $70,000 Cost of goods sold -64,500 -45,000 Gross profit $30,000 $25,000 % inventory remaining 30% 20% Gross profit deferred $9,000 $5,000 EOY Receivable/Payable $32,000 $29,500 Inventory not remaining at the end of the year has been sold outside of the controlled group. The parent and the subsidiary report the following financial statements at December 31, 2023: Income Statement Wondersome Philmore Sales $2,400,000 $602,400 Cost of goods sold -1,580,000 -465,398 Gross Profit 820,000 137,002 Income (loss) from subsidiary 45,851 Operating expenses -711.200 -56,000 Net income $154.651 $81,002 Statement of Retained Earnings Wondersome BOY Retained Earnings $3,500,000 Net income 154,651 Dividends -85,000 EOY Retained Earnings $3.569.651 Philmore $608,000 81,002 -15,000 $674.002 Balance Sheet Wondersome Philmore Assets: Cash Accounts receivable Inventory Equity Investment PPE, net $84,700 113,200 142,100 $450,000 425,000 654,000 803,251 4,438,400 $6.770.651 1,000,002 $1,340,002 Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings $505,900 703,500 402,000 1,589,600 3,569,651 $6.770.651 $99,500 250,000 75,300 241,200 674,002 $1.340.002 g. Complete the consolidating entries according to the C-E-A-D-I sequence. Dr. Cr. [C] [E] [A] [D] [lcogs] [lsales] [lcogs] [lpay]