On January 1, 2016, Parent acquired 80% of Sub for $300,000 plus $10,000 in acquisition costs. On the date of acquisition, Sub had the following balance sheet: Sub Company Balance Sheet January 1, 2016 Assets Accounts Receivable Inventory Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation Goodwill Total Assets Liabilities and Equity $150,000 Current Liabilities 40,000 Bonds Payable 70,000 Common Stock, $1 par 220,000 Paid-in Capital (60,000) Retained Earnings 80,000 (30,000) 30,000 $500.000 Total Liabilities and Equity $80,000 100,000 100,000 120,000 100,000 $500,000 An appraisal indicates that the following items have fair values that differed from their book values: Inventory Land Buildings Equipment Copyright Bonds Payable 70,000 Sold in 2016 160,000 200,000 20 year remaining life 20,000 6 year remaining life 20,000 10 year remaining life 95,000 10 year remaining life Parent and Sub had the following trial balances on December 31, 2020: Sub 270,000 120,000 50,000 Parent 423,000 80,000 90,000 300,000 100,000 700,000 (200,000) 150,000 (75,000) Cash Accounts Receivable Inventory Investment in Sub Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation Goodwill Current Liabilities Bonds Payable Common Stock Paid-in-Capital Retained Earnings, 1/1/20 Sales Cost of Goods Sold Other Expenses Dividend Income Dividends Declared Total (50,000) 40,000 200,000 (80,000) 70,000 (36,000) 30,000 (44,000) (100,000) (100,000) (120,000) (150,000) (500,000 280,000 60,000 (200,000) (800,000) (400,000) (700,000) 400,000 170,000 (8,000) 20,000 $0 10,000 $0 INSTRUCTIONS: (1) Record the investment in Sub. (2) Prepare a Value Analysis Schedule. (3) Prepare a Determination and Distribution of excess schedule for the investment in Sub. (4) Prepare all required elimination entries for the December 31, 2020 consolidated worksheet in general journal format. (5) Prepare the income distribution schedules. (6) Complete the consolidated worksheet for Parent and its subsidiary Sub as of December 31, 2020. (7) Prepare the consolidated Income Statement, Statement of Retained Earnings, and Balance sheet as of December 31, 2020. On January 1, 2016, Parent acquired 80% of Sub for $300,000 plus $10,000 in acquisition costs. On the date of acquisition, Sub had the following balance sheet: Sub Company Balance Sheet January 1, 2016 Assets Accounts Receivable Inventory Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation Goodwill Total Assets Liabilities and Equity $150,000 Current Liabilities 40,000 Bonds Payable 70,000 Common Stock, $1 par 220,000 Paid-in Capital (60,000) Retained Earnings 80,000 (30,000) 30,000 $500.000 Total Liabilities and Equity $80,000 100,000 100,000 120,000 100,000 $500,000 An appraisal indicates that the following items have fair values that differed from their book values: Inventory Land Buildings Equipment Copyright Bonds Payable 70,000 Sold in 2016 160,000 200,000 20 year remaining life 20,000 6 year remaining life 20,000 10 year remaining life 95,000 10 year remaining life Parent and Sub had the following trial balances on December 31, 2020: Sub 270,000 120,000 50,000 Parent 423,000 80,000 90,000 300,000 100,000 700,000 (200,000) 150,000 (75,000) Cash Accounts Receivable Inventory Investment in Sub Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation Goodwill Current Liabilities Bonds Payable Common Stock Paid-in-Capital Retained Earnings, 1/1/20 Sales Cost of Goods Sold Other Expenses Dividend Income Dividends Declared Total (50,000) 40,000 200,000 (80,000) 70,000 (36,000) 30,000 (44,000) (100,000) (100,000) (120,000) (150,000) (500,000 280,000 60,000 (200,000) (800,000) (400,000) (700,000) 400,000 170,000 (8,000) 20,000 $0 10,000 $0 INSTRUCTIONS: (1) Record the investment in Sub. (2) Prepare a Value Analysis Schedule. (3) Prepare a Determination and Distribution of excess schedule for the investment in Sub. (4) Prepare all required elimination entries for the December 31, 2020 consolidated worksheet in general journal format. (5) Prepare the income distribution schedules. (6) Complete the consolidated worksheet for Parent and its subsidiary Sub as of December 31, 2020. (7) Prepare the consolidated Income Statement, Statement of Retained Earnings, and Balance sheet as of December 31, 2020