Parent company acquired $80\%$ of the stock of Subsidiary company on January $1,2018,$ for $$250,380.$ On

this date, the balances of Subsidiary company's stockholders' equity accounts were:

On January $1,2018,$ the fair value of the non$-$controlling interest was $$61,620.$

On January $1,2018,$ the book and fair values of the assets were fairly stated but for the following items:

Other items of note:

Each company sells to each other with a markup on sales of $25\%.($Profit equals markup $\%$ times

carrying value.$)$ Both firms use FIFO for accounting for inventory.

At the end of $2022,$ Parent had on hand materials purchased from Subsidiary valued at

$$10,400.$

Subsidiary had no inventory purchased from the parent on hand at the end of

the $2022.$

At the end of $2021,$ Subsidiary had on hand materials purchased from Parent valued at

$$15,600.$

At the end of $2021,$ Parent had on hand materials purchased from Subsidiary valued at

$$5,000.$

At the end of $2022,$ Subsidiary owed the parent $$5,200$ for goods purchased from the

Parent during $2022.$

Total sales between Parent and Subsidiary in $2022$ totaled $$15,000.$

On January $1,2021,$ Parent sold equipment to subsidiary for $$104,000.$ The book value of the

equipment sold at the time of the sale was $$84,500.$ It was estimated that the equipment sold

had a remaining useful life of $6$ years, no salvage value.

In $2020,$ goodwill was impaired by $$10,000.$

You work for Parent and are creating the consolidated financial statements as of December $31,2022.$ In

the workbook provided:

Allocate the original purchase price.

Calculate $2022$ equity in income.

Prepare the consolidation workpaper entries using the CIERON methodology.

Prepare the Income statement and balance sheet.