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On January 1, 2016, Parent Company acquired 100% of the common stock of Subsidiary Company for $750,000. On this date Subsidiary had total owner's equity

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On January 1, 2016, Parent Company acquired 100% of the common stock of Subsidiary Company for $750,000. On this date Subsidiary had total owner's equity of $540,000 Any excess of cost over book value is attributable to land, undervalued $10,000 and to goodwill. During 2016 and 2017, Patent has appropriately accounted for its investment in Subsidiary using the simple equity method On January 1, 2017. Parent held merchandise acquired from Subsidiary for $10,000 During 2017, Subsidiary sold merchandise to Parent for $100,000, of which $20,000 is held by Parent on December 31, 2017 Subsidiary's usual gross profit on affiliated sales is 40% On December 31. 2017, Parent still owes Subsidiary $20,000 for merchandise acquired in December Required: Using the information in the paragraphs above and the trial balance information in the worksheet below prepare journal entries only (DO NOT COMPLETE THE WORKSHEET) for eliminating current equity (E), determination and distribution (D) CY1, CY2, IS, IA, Bl, El Please show all calculations for the most points. On January 1, 2016, Parent Company acquired 100% of the common stock of Subsidiary Company for $750,000. On this date Subsidiary had total owner's equity of $540,000 Any excess of cost over book value is attributable to land, undervalued $10,000 and to goodwill. During 2016 and 2017, Patent has appropriately accounted for its investment in Subsidiary using the simple equity method On January 1, 2017. Parent held merchandise acquired from Subsidiary for $10,000 During 2017, Subsidiary sold merchandise to Parent for $100,000, of which $20,000 is held by Parent on December 31, 2017 Subsidiary's usual gross profit on affiliated sales is 40% On December 31. 2017, Parent still owes Subsidiary $20,000 for merchandise acquired in December Required: Using the information in the paragraphs above and the trial balance information in the worksheet below prepare journal entries only (DO NOT COMPLETE THE WORKSHEET) for eliminating current equity (E), determination and distribution (D) CY1, CY2, IS, IA, Bl, El Please show all calculations for the most points

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