On January 1, 2017, Parent Inc., issued securities with a total fair value of $618,000 for 100 percent of sub corporations outstanding ownership shares. Sub has a long supplied inventory to Parent. The companies expect to achieve synergies with production scheduling and product development with this combination.

Although Subs book value at the acquisition date was $338,000, the fair value of its trademarks was assessed to be $72,000 more than their carrying amounts. Additionally, Subs patented technology was undervalued in its accounting records by $208,000. The trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years.

In 2017, Sub sold Parent inventory costing $107,500 for $215,000. As of December 31, 2017, Parent had resold 68 percent of this inventory. In 2018, Parent bought from Sub $178,000 of inventory that had an original cost of $89,000. At the end of 2018, Parent held $48,000 (transfer price) of inventory acquired from Sub, all from its 2018 purchases.

During 2018, Parent sold Sub a parcel of land for $111,800 and recorded a gain of $19,800 on the sale. Sub still owes Parent $77,200 (current liability) related to the land sale.

At the end of 2018, Parent and Sub prepared the following statements in preparation for consolidation.

Prepare consolidation worksheet for Parent and Sub.

Subsidiary Parent $ 884,200 $ 396,000 $ (380,400) $ (207,800) Revenues Cost of goods sold $ (208,200) $(89,000) $19,800 $ Other operating expenses Gain on sale of land Equity in Subsidiary's earnings $63,800 $ Net Income Retained Earnings Jan 1, 2018 378,500 $ 322,200 Net Income Dividends Declared Retained Earnings - Jan 31, 2018 654,100$ 383,900 Cash and receivables Inventory Investment in Subsidiary $ 379,200$99,200 $ 379,200$99,200 $ (103,600)$ (37,500) $ 141,000$ 192,000 $ 429,300136,600 $ 790,600 $ $71,900 Trademarks Land, buildings, and equipment (ne $ 881,600 $347,000 Patented Technology Total Assets Liabilities Common Stock Additional paid-in capital Retained earnings Dec 31, 2018 $654,100$ 383,900 Total Liabilities and equity $ 154,800 $2,242,500902,300 $ 855,600295,900 $ 400,000$190,000 $ 332,800$32,500 $2,242,500$ 902,300