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Parent Corporation paid $90,000 to acquire all the common shares of Subsidiary Inc. on December 31, 20148. At that date, Parent Corporation also had an

Parent Corporation paid $90,000 to acquire all the common shares of Subsidiary Inc. on December 31, 20148. At that date, Parent Corporation also had an outstanding note payable to Subsidiary Inc. in the amount of $50,000. Assume that Parent Corporation and Subsidiary Inc. had the following account balances at December 31, 2018 (immediately after the investment):

Assets:ParentSubsidiary

CorporationInc.

Cash $ 10,000$ 35,000

Note receivable from Parent Corporation50,000

Inventory40,00060,000

Investment in Subsidiary Inc.90,000

Other assets110,00075,000

Total $250,000 $220,000

Liabilities and shareholders' equity:

Accounts payable$ 30,000$130,000

Note payable to Subsidiary Inc.50,000

Common shares 100,00060,000

Retained earnings70,00030,000

Total $250,000$220,000

a) Give the consolidating worksheet entries necessary at December 31, 2018 in journal entry format.

b) Prepare consolidated balance sheet at December 31, 2018.

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