Parent acquired subsidiary of January 1,2014 at a price of $150,000 In excess of book value. Of that excess $100,000 was allocated to an unrecorded customer list with a 10 year life with the remainder to Goodwill. On January 2017, subsidiary sold equipment to parent for $60,000. The equipment had a cost of $70,000 and accumulated depreciation of $28,000. The remaining life of the equipment was estimated at six years. Financial statements for the two companies for the year ended December 31, 2018 are represented below.

b. Compute the amount of unrealized gain at January 1, 2018. c. Prepare entries required under the equity method on Parent's books for 2018 d. Prepare the consolidation entries for 2018