Please fill in the red x boxes with the appropriate numbers for the following problem.

Consolidation spreadsheet for continuous sale of inventory - Equity method Assume that a parent company acquired a subsidiary on January 1, 2016. The purchase price was $600,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following AAP assets:

The AAP assets with a definite useful life have been amortized as part of the parent's equity method accounting. The Goodwill asset has been tested annually for impairment, and has not been found to be impaired.

Assume that the parent company sells inventory to its wholly owned subsidiary. The subsidiary, ultimately, sells the inventory to customers outside of the consolidated group. You have compiled the following data for the years ending 2018 and 2019:

The inventory not remaining at the end of the year has been sold to unaffiliated entities outside of the consolidated group. The parent uses the equity method to account for its Equity Investment.

The financial statements of the parent and its subsidiary for the year ended December 31, 2019, follow in part d. below.

a. Show the computation to yield the pre-consolidation $80,400 Income loss from subsidiary reported by the parent during 2019.

Note: Use negative signs with answers when appropriate.

b. Show the computation to yield the Equity Investment balance of $1,152,000 reported by the parent at December 31, 2019.

Note: Use negative signs with answers when appropriate.

c. Prepare the consolidation entries for the year ended December 31, 2019.

d. Prepare the consolidation spreadsheet for the year ended December 31, 2019. Hint: Use negative signs with answers when appropriate.

\begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Net income of subsidiary } & & & 132,000 \\ \hline Plus: & Prior year intercompany gross profit & & & 14,400 \\ \hline Less: & Current year intercompany gross profit & & & 42,000 \\ \hline \multicolumn{3}{|c|}{ AAP depreciation } & & 24,000 \\ \hline & Income (loss) from subsidiary & & & 80,400 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ AAP Asset } & OriginalAmount & OriginalUsefulLife(years) \\ \hline Property, plant and equipment (PPE), net & $120,000 & 20 \\ \hline Customer list & 210,000 & 10 \\ \hline Royalty agreement & 150,000 & 10 \\ \hline Goodwill & 120,000 & indefinite \\ \hline & $600,000 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline & InventorySales & GrossProfitRemaininginUnsoldInventory & Receivable(Payable) \\ \hline 2019 & $81,600 & $24,000 & $32,400 \\ \hline 2018 & $51,600 & $14,400 & $15,600 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Common stock & 60,000 \\ \hline APIC & 84,000 \\ \hline Retained earnings & 486,000 \\ \hline BOY unamortized AAP & 474,000 \\ \hline BOY deferred profit & 18,000 \\ \hline Income (loss) from subsidiary & 80,400 \\ \hline Dividends & 14,400 \\ \hline Equity investment & 1,152,000 \\ \hline \end{tabular}