Parent Company bought all of Subsidiary Company's voting stock on January 1, 2020 for $125,000.Fair value information on Subsidiary's assets and liabilities at the date of acquisition is as follows:

Inventories are overvalued by $5,000.Subsidiary uses FIFO to report its inventories, and acquisition-date inventories were sold in 2020.

Property and equipment is overvalued by $20,000.P&E has a 10-year remaining life, straight-line.

Liabilities are understated by $500.Assume a 5-year remaining life, and straight-line amortization of any premium/discount.

Previously unreported identifiable intangibles are valued at $35,000.These intangibles have indefinite lives, but testing reveals impairment of $3,000 in 2020.

Goodwill reported for this acquisition is not impaired in 2020.

Parent uses the complete equity method to account for its investment in Subsidiary on its own books.Trial balances for both companies at December 31, 2020 are in the consolidation working paper that follows.

Label the entries C, E, R or O as indicated on the first page of this project.