Parent Corporation purchased 60% of Subsidiary Companys common stock on January 1, 2017 for $307,500, which reflected 60% of Subsidiarys total fair value at this date. Additional information at the acquisition date was:

• Subsidiarys balances were: common stock $250,000 and retained earnings $150,000.
• The fair value of noncontrolling interest was $205,000.
• Subsidiarys land had a book value of $22,500 and fair value of $30,000; equipment had a book value of $320,000 and fair value of $360,000; patents had a book value of $0 and fair value of $15,000. The equipment had a remaining economic life of 8 years and patents had a remaining useful life of 10 years.
• At the end of 2019, Parent determined that the fair value of Subsidiary Company, which is considered a reporting unit, is $20,000 less than its carrying value.

Subsidiary reported the following net income and dividend payments:

Year	Net Income	Dividends Paid
2017	$45,000	$25,000
2018	55,000	35,000
2019	30,000	10,000

Required: (Note that this is all OLD stuff!)

1. Prepare the consolidation adjusting and eliminating entries at the January 1, 2017 acquisition date in general journal format.
2. Prepare Parents equity method journal entries to account for its Investment in Subsidiary for 2019.
3. Calculate Parents Investment in Sub balance at December 31, 2019.