Parent Company acquired 100% of the stock of Subsidiary Company on January 1, 2022. The fair value of the consideration transferred exceeded Subsidiarys stockholders equity by $ 2 million. The excess was equally attributed to undervalued equipment with a remaining useful life of 10 years and goodwill.

Parent Company will be preparing consolidated financial statements with Subsidiary Company for the first time at December 31, 2022.

Explain in detail what steps must be taken to complete a consolidated worksheet at December 31, 2022.