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Part II Intercompany TI'ansactions Facts: Sub Co is a 90% owned subsidiary of Parent Co, acquired for $94,500 cash on July 1, 2016, when Sub's

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Part II Intercompany TI'ansactions Facts: Sub Co is a 90% owned subsidiary of Parent Co, acquired for $94,500 cash on July 1, 2016, when Sub's net assets consisted of $100,000 capital stock and $5,000 retained earnings. The cost of Parent Co's 90% interest in Sun was equal to book value and fair value of the interest acquired. Parent Co sells inventory items to Sub Co on a regular basis, and the intercompany transaction data for 2019 are as follows: Sales to Sub Co in 2019 (cost $15,000), selling price $20,000 Unrealized prot in Sub Co's inventory at December 31, 2018 (inventory was sold during 2019) 2,000 Unrealized prot in Sub Co's inventory at December 31, 2019 2,500 Sub Co's accounts payable to Parent Co at December 31, 2019 10,000 At December 31, 2018, Parent Co's investment in subsidiary account had a balance of $128,500. This balance consisted of Parent Co's 90% equity in Sub's $145,000 net assets on that date less $2,000 unrealized prot in Sub's December 31, 2018 inventory. During 2019 Parent Co made the following entries in its records for its investment in Sub: Investment in subsidiary _ 9,000 To record dividends from Sub Co ($10,000 * 90%) Investment in subsidiary 26,500 Income from subsidiary _ 26,500 To record income from Sub Co for 2019 as follows: Equity in Sub Co's net income ($30, 000 * 90%) $27,000 Add: 2018 inventory prot recognized in 201 9 2,000 Less: 2019 inventory prot deferred at year-end (2,5002 Totai $26,500 The 2018 intercompany sales that led to the unrealized inventory prots were recognize in 2019 and the full amount of the unrealized inventory prot originating in 2019 is deferred at December 31, 2019. Parent Co's investment in Sub Co increased from $128,500 atjanuary 1, 2019 to $146,000 at December 31, 2019, the entire change consisting of $26,500 income less $9,000 dividends for the year. Required: Using the Excel le \"Case 1 - Advanced accounting topics" and the worksheet "lntercompany," prepare and show the required adjusting and eliminating journal entries (in journal entry form) and complete the worksheet, posting the journal entries to the worksheet and completing the Consolidated column with the totals

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