Parent Company purchased 80 percent of Subsidiary Company's common stock on January 1, 2020.At that date, Subsidiary reported retained earnings of $160,000 and common stock of $40,000.The fair value of its buildings was $30,000 more than the book value.

Parent Company paid $200,000 to acquire Subsidiary shares.At that date, the noncontrolling interest had a fair value of $50,000.The remaining economic life of all of Subsidiary's assets was 5 years.The Net income of the subsidiary was $20,000 for the year ended 2020.The subsidiary paid out $2,000 of dividends during the year.Goodwill impairment by the end of the year was $1,000.

Prepare the equity method journal entries on the Parent's books for the purchase of the subsidiary, parent's share of subsidiary income, dividends received from subsidiary, and any amortization.

Prepare the workpaper elimination entries for the basic Investment account elimination entry, amortized excess value reclassification entry, and the excess value reclassification entry.