On January 1, 2019, Parent Company acquired 80% Sub Companys voting stock for $75,000 in cash. Subs book value at January 1, 2019 was $6,000. The fair value of the NCI at the time of acquisition was $4,000. Some of Subs identifiable assets at the date of purchase had fair values that were different from reported values, as follows:

	Fair Value minus Book Value
Property & equipment, net (10 years, straight-line)	$(20,000)
Identifiable intangibles (5 years, straight-line)	25,000

It is now December 31, 2020 (2 years later). There has been no goodwill impairment. Sub sells merchandise to Parent at a markup of 25% on cost. Parents beginning inventory for 2020 contains $1,000 in merchandise purchased from Sub. Parents ending inventory contains $750 in merchandise purchased from Sub. Total 2020 retail sales from Sub to Parent were $25,000. Parent owes sub $10,000 for inventory purchases at the end of 2020. On Jan 1, 2019 Parent sold a pickup truck to the sub for $20,000. At the time of the sale the truck had a book value of $10,000. The remaining useful life of the truck is 5 years. Parent uses the complete equity method to account for its investment.

All inventory is accounted for on the FIFO basis.

December 31, 2020 trial balances for Parent and Sub appear in the consolidation working paper previously sent to you.

Required

a. Calculate total goodwill for this acquisition.

b. Calculate equity in net income for 2020.

c. Fill in the eliminating entries to consolidate the trial balances of the two companies at December 31, 2020, using the consolidation working paper provided. Clearly label your entries(C), (I), (E), (R), (O) and (N).