On January 1, 2016, Parent Corp. issued shares of its common stock to acquire all of the outstanding common stock of Sub. Sub's book value was only $140,000 at the time, but Parent issued 12,000 shares having a par value of $1 per share and a fair value of $20 per share. Parent was willing to convey these shares because it felt that buildings (ten-year life) were undervalued on sub's records by $60,000 while equipment (five-year life) was undervalued by $25,000. Any consideration transferred over fair value of identified net assets acquired is assigned to goodwill Following are the individual financial records for these two companies for the year ended December 31 2019 Parent Corp $ 372,000 Sub Inc. $ 108,000 Revenues Expenses Equity in subsidiary earnings Net income Retained earnings, January 1, 2019 Net income (above) Dividends paid Retained earnings, December 31, 2019 Current assets Investment in Spaulding Inc Buildings (net) Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, December 31, 2019 Total liabilities and stockholders' equity (72,000) (264,000) 25,000 $ 133,000 $ 765,000 133,000 $36,000 $102,000 36,000 (84.000) (24,000) $114,000 $ 22,000 0 85,000 129,000 $ 236,000 $ 50,000 72,000 $814,000 $ 150,000 242,000 525,000 389,250 $ 1,306,250 $82,250 360,000 50,000 814,000 $1,306,250 114,000 $ 236,000 Required 1. 2. 3. Provide the journal entry recorded by Parent for its investment in sub in 2016 Provide the equity method journal entries recorded by Parent for its investment in Sub for 2019 Prepare the consolidation entries for 2019