On January 1, 2021, Parent acquired 70 percent of the outstanding shares of Subsidiary Company and the price paid was proportionate to Subsidiary's total fair value. The fair value of Subsidiary was $150,000 in excess of its book value and that excess value was assigned entirely to an unrecorded Patent. The estimated useful life of the Patent on the acquisition date was 10 years. There was not goodwill created from the acquisition. Separate financial statements for the two companies as of December 31, 2022, are as follows: Parent Subsidiary. (200,000) Sales $ (250,000) $ Cost of Goods Sold 175,000 140,000 30,000 20,000 Depreciation and Amortization Expense Equity Income from Superior (22.600) (67,600) $ Net Income $ (40,000) $ (451,600) $ Retained Earnings, 1/1 Net income (above) (67,600) (228,000) (40,000) 8,000 (260,000) Dividend Declared 15,000 (504,200) $ Retained Earnings, 12/31 $ $ 65,000 $ Cash and Accounts Receivable Inventory Building and Equipment (net) 220,000 90,000 110,000 180,000 270,000 Investment in Superior 313.700 Total Assets $ 868,700 $ 380,000 Current Liabilities $ (109,500) $ (30,000) Total Assets $ 868,700 $ 380,000 Current Liabilities $ (109,500) $ (255,000) (30,000) (90,000) Common Stocks Retained Earnings, 12/31 Total Liabilities and Equities (504,200) (868,700) $ _(260,000) (380,000) $ Credit balances are indicated by parentheses. Parent applies the equity method for maintaining its investment account. On December 31, 2021, Subsidiary's inventory contained $60,000 of merchandise purchased from Parent in 2021. Parent produced the merchandise for $39,600 and sold them to Subsidiary for $60,000. By December 31, 2022, Subsidiary had sold externally all merchandise from the 2021 inventory transfer. In 2022, Subsidiary purchased additional merchandise from Parent for $150,000. Parent spent $99,000 to produce them. By December 31, 2022, Subsidiary still had in inventory $45,000 of the 2022 purchase from Parent. Required: 1. (30 points) Prepare ALL consolidation entries (including all entries not related to intra-entity inventory transfers) to complete a consolidation worksheet for the year ended December 31, 2022. 2. (12 points) Without preparing a consolidation worksheet, determine the consolidated totals or balances for the following items that would appear on the 2022 consolidated financial statements: 1. Consolidated cost of goods sold 2. Consolidated inventory as of December 31, 2022 3. Income assigned to the noncontrolling interest (NCI) On January 1, 2021, Parent acquired 70 percent of the outstanding shares of Subsidiary Company and the price paid was proportionate to Subsidiary's total fair value. The fair value of Subsidiary was $150,000 in excess of its book value and that excess value was assigned entirely to an unrecorded Patent. The estimated useful life of the Patent on the acquisition date was 10 years. There was not goodwill created from the acquisition. Separate financial statements for the two companies as of December 31, 2022, are as follows: Parent Subsidiary. (200,000) Sales $ (250,000) $ Cost of Goods Sold 175,000 140,000 30,000 20,000 Depreciation and Amortization Expense Equity Income from Superior (22.600) (67,600) $ Net Income $ (40,000) $ (451,600) $ Retained Earnings, 1/1 Net income (above) (67,600) (228,000) (40,000) 8,000 (260,000) Dividend Declared 15,000 (504,200) $ Retained Earnings, 12/31 $ $ 65,000 $ Cash and Accounts Receivable Inventory Building and Equipment (net) 220,000 90,000 110,000 180,000 270,000 Investment in Superior 313.700 Total Assets $ 868,700 $ 380,000 Current Liabilities $ (109,500) $ (30,000) Total Assets $ 868,700 $ 380,000 Current Liabilities $ (109,500) $ (255,000) (30,000) (90,000) Common Stocks Retained Earnings, 12/31 Total Liabilities and Equities (504,200) (868,700) $ _(260,000) (380,000) $ Credit balances are indicated by parentheses. Parent applies the equity method for maintaining its investment account. On December 31, 2021, Subsidiary's inventory contained $60,000 of merchandise purchased from Parent in 2021. Parent produced the merchandise for $39,600 and sold them to Subsidiary for $60,000. By December 31, 2022, Subsidiary had sold externally all merchandise from the 2021 inventory transfer. In 2022, Subsidiary purchased additional merchandise from Parent for $150,000. Parent spent $99,000 to produce them. By December 31, 2022, Subsidiary still had in inventory $45,000 of the 2022 purchase from Parent. Required: 1. (30 points) Prepare ALL consolidation entries (including all entries not related to intra-entity inventory transfers) to complete a consolidation worksheet for the year ended December 31, 2022. 2. (12 points) Without preparing a consolidation worksheet, determine the consolidated totals or balances for the following items that would appear on the 2022 consolidated financial statements: 1. Consolidated cost of goods sold 2. Consolidated inventory as of December 31, 2022 3. Income assigned to the noncontrolling interest (NCI)