Parent Co paid $176,000 for 80% of the outstanding voting stock of Sub Co on January 1, 2018, when Sub Cos stockholders equity consisted of $120,000 common stock and $60,000 retained earnings. This implied that the total fair value of Sub co is $220,000 ($176,000 / 80%). The company assigned the $40,000 excess fair value to previously unrecorded patents with a 10-year useful life.

Parent Cos $36,800 income from Sub Co for 2018 consisted of 80% of Sub Cos $50,000 net income less $3,200 ($40,000 / 10 year life * 80%) patent amortization. Parent Cos investment in subsidiary account at December 31, 2018 consisted of the following:

Investment in Sub Co (1/1/18)	$176,000
Income from subsidiary	36,800
Less: Dividend from Sub Co	(24,000)
Investment in subsidiary (12/31/18)	$188,800

Required: Using the Excel file Case 1 - Advanced accounting topics and the worksheet Consolidation, prepare and show the required adjusting and eliminating journal entries (in journal entry form) and complete the worksheet, posting the journal entries to the worksheet and completing the Consolidated column with the totals. Make sure to appropriately cross-reference your journal entries with the worksheet. Show calculations when appropriate.

Consolidation Accounting Separate Company Financial Statements Parent Co S ub Co Adjustments and Eliminations DR - Consolidated 130,000 500,000 36,800 536,800 130,000 400,000 400,000 136,800 80,000 80,000 50,000 136,800 50,000 Income Statement Net sales Income from subsidiary Total revenue Expenses Other expenses Total expenses Consolidated net income Noncontrolling interest share Controlling share of net income Statement of Retained Earnings Beginning retained earnings Net income Dividends Ending retained earnings Balance Sheet Assets Cash Other current assets Total current assets Plant and equipment, net Patents, net Investment in subsidiary Total assets 10,000 136,800 (60,000) 86,800 60,000 50,000 (30,000) 80,000 78,000 180,000 258,000 500,000 20,000 100,000 120,000 140,000 0 188,800 946,800 260,000 Liabilities & Stockholders' Equity Other liabilities | Total current liabilities Common stock Retained earnings Noncontrolling interest Total stockholders' equity Total liab & stockholders' eq 160,000 160,000 700,000 86,800 60,000 60,000 120,000 80,000 786,800 200,000 260,000 946,800