On January 2, 2014, U. S. Grant Corp. purchased 24,000 shares (40%) of the common stock of R. E. Lee & Company. The purchase price was $480,000. Grant has significant influence over Lee. No amortization is required. During 2014, Lee reported income of $120,000 and paid dividends of $48,000. On January 2, 2015 Grant sold 3,000 shares for $75,000. a. Compute the balance in Equity Investment at December 31, 2014. b. Prepare the journal entry to record the sale of the 3,000 shares. c. What was the balance in Equity Investment after the shares were sold? On January 1, 2015, Parent Company purchased all of the common stock of Subsidiary Company for $350,000 cash. On that date, Subsidiary had common stock of $20,000, additional paid-in capital of $80,000, and retained earnings of $150,000. The difference between the cost of the purchase and the book value of Subsidiary's net assets was at least partly due to under or overvalued assets and liabilities. Inventory was undervalued by $5,000. Land was undervalued by $20,000. Buildings and Equipment were undervalued by $30,000. Bonds Payable was overvalued by $5,000. Any unexplained difference is due to Goodwill. Prepare all necessary entries for a January 1, 2015, consolidated balance sheet