Parent Corporation acquired 80% of Subsidiary Companys common stock at January 1, 2017 for $2,800,000. At that date, the fair value of the noncontrolling interest was $700,000. Financial statement data for 2020 are presented below.

Additional information:

• At the acquisition date, Subs net assets were $3,000,000. The full amount of the excess of fair value over book value is related entirely to buildings and equipment, which had an estimated remaining economic life of 10 years.
• Parent and Sub regularly purchase inventory from each other. Intercompany inventory sales transactions were:
• During 2019, Sub sold inventory costing $400,000 to Parent for $600,000; Parent resold 60% of the inventory in 2019 and 40% in 2020.
• During 2019, Parent sold inventory costing $200,000 to Sub for $260,000; Sub resold 2/3 of the inventory in 2019 and 1/3 in 2020.
• During 2020, Sub sold inventory costing $300,000 to Parent for $450,000; Parent resold 1/3 of the inventory in 2020.
• During 2020, Parent sold inventory costing $90,000 to Sub for $120,000 and Sub continues to hold all of the inventory as of the end of 2020.
• Analysis of receivables and payables showed that Sub owed Parent $100,000 on account at December 31, 2020.

Required:

3. Complete the consolidation workpaper for 2020 (on the following page).

Parent Corp. and Subsidiary, Consolidation Workpaper, December 31, 2020 ($ in thousands)
Account	Parent	Sun	Adjustments/ Eliminations		Consolidated
			Debit	Credit
Sales	5,204	2,800
Income from Sub	254	---
Cost of goods sold	(4,160)	(2,020)
Depreciation expense	(300)	(200)
Other expenses	(240)	(180)
Net income	758	400
Retained earnings, Jan. 1	3,375	2,150
Net income	758	400
Dividends (declared)	(500)	(250)
Retained earnings, Dec. 31	3,633	2,300
Cash	1,303	100
Accounts receivable	800	700
Inventory	1,700	1,100
Buildings & equipment	6,000	4,000
Accumulated depreciation	(3,100)	(1,200)
Investment in Sub	2,930	---
Total assets	9,633	4,700
Accounts payable	1,000	152
Bonds payable	3,000	1,000
Bond premium	---	48
Common stock	2,000	1,000
Additional paid-in capital	---	200
Retained earnings	3,633	2,300
Total Liabilities & Stockholders Equity	9,633	4,700