On January 1, 2016, Parent Company purchased 9,000 shares of the common stock of Subsidiary Company for $405,000. On this date, Subsidiary had 20,000 shares of $5 par common stock authorized, 10,000 shares issued and outstanding. Other paid-in capital and retained earnings were $150,000 and $200,000 respectively. On January 1, 2016, any excess of cost over book value is due to a patent, to be amortized over 10 years.

Subsidiary's net income and dividends for two years were:

	2016	2017
Net income	$50,000	$80,000
Dividends	10,000	20,000

On January 1, 2017, Subsidiary Company sold an additional 2,000 shares of common stock for $50 per share. Parent purchased 1,200 shares of the new issue, and non-controlling shareholders purchased the other 800.

For both 2016 and 2017, Parent Company has applied the simple equity method.

Required:

a.	Prepare a schedule that measures Parents change in interest ownership effective with Subs issuance of the 2,000 shares and Parents acquisition of 1,200 of those shares.
b.	Prepare Parents journal entry to record its purchase of the 1,200 shares on 1/1/17
c.	Prepare a schedule showing the 12/31/17 balance of Parents Investment in Sub account