Part I Consolidation Accounting Facts: Assume that on January 1, Parent Company ("Parent Co") acquires 100% of the common stock of Subsidiary Company ("Sub Co") for $700,000. On the acquisition date, Sub Co reports a book value of Stockholders' Equity of $220,000. Parent Co is willing to pay the purchase price because the subsidiary owns a customer list that has a fair value equal to $50,000. In addition, Sub Co owns property, plant and equipment that are worth $150,000 more than the amount at which they are reported on Sub Co's books. Both of these identifiable assets are depreciated or amortized over a 20 year period with no salvage value (and assume no tax effect, so no adjustment to income taxes). Any remaining excess purchase price is attributed to corporate synergies that Parent Co expects to realize following the combination of the two companies. Parent Co and Sub Co's financial statements at the end of the first year following the acquisition are detailed in the Excel file "Case 1 - Advanced accounting topics." Required: Using the Excel file "Case 1 - Advanced accounting topics," prepare the consolidating journal entries and the consolidated financial statements at the end of the first year following the acquisition.