Parent company acquired 80% of the stock of Subsidiary company on January 1, 2018, for $250,380. On this date, the balances of Subsidiary companys stockholders equity accounts were:

Common Stock	$156,000
Retained Earnings	$31,200

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:

Item	Book Value	Fair Value	Useful Life
Accounts Receivable	$39,000	$33,800	1 year
PPE, net	$65,000	$88,400	6 years
Licenses	$45,500	$100,100	7 years
Notes Payable	$26,000	$18,200	4 years

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:

1. Allocate the original purchase price.
2. Calculate 2022 equity in income.
3. Prepare the consolidation workpaper entries using the CIERON methodology.
4. Prepare the Income statement and balance sheet.