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Parent Corporation acquired 100% of Sub Corporation on January 1, 2020 for $285,000. The trial balances for the two companies on December 31, 2020, included

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Parent Corporation acquired 100% of Sub Corporation on January 1, 2020 for $285,000. The trial balances for the two companies on December 31, 2020, included the following amounts. Item Sub Corporation Debit Credit 10,000 55,000 100,000 20,000 150,000 Cash Accounts Receivable Inventory Land Building and Equipment Investment in Sub Corp. Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgage Payable Common Stock Retained Earnings Sales Income from Sub Corp Parent Corporation Debit Credit 50,000 35,000 170.000 60,000 500,000 257,700 500,000 25,000 75,000 50,000 155,000 70,000 200,000 300,000 290,000 700,000 7,700 250,000 15,000 75,000 35,000 75,000 35,000 50,000 25,000 115,000 410,000 1,722,700 1,722,700 710,000 710,000 Other information: 1. Out of the total purchase price, $60,000 is paid for the goodwill. However, the manager assess the reporting division and estimated that 50% of the goodwill has impaired. 2. The rest of the differential is split between the building and equipment (40%) and inventory (60%). By the end of the year. Sub Corp sold 50% of all the inventories acquired. The building and equipment has five years of remaining economic life and the company uses the straight line depreciation 3. Sub Corp owed Parent Corp $20,000 in the form of accounts of payable as of December 31, 2020 Task 1a: Calculate the amount of differential? Task 16: What is the amount of excess value (i.e., fair value above the book value)? Task 1c: What is the book value of Sub's net asset? Task 2. Give all journal entries recorded by Parent with regard to its investment in Sub during 2020 Task 3: What is the ending balance of the Investment in Sub account at December 31, 2020, before the consolidation? Reconcile by showing the changes to the account. Task 4: What is the ending balance of the Income from Sub account at December 31, 2020, before the consolidation? Reconcile by showing the changes to the account. Task 5: Prepare all consolidation entries needed to prepare a full set of consolidated financial statements for 2020. Words

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