Prepare consolidation spreadshect for intercompany sale of equipment - Equity method Assume a parent company acquired its subsidiary on January 1, 2018, at a purchase price that was $185,000 in excess of the book value of the subsidiary 5 Stoekholders' Equity on the acquisition date: Of that excess, $110,000 was assigned to a Customer Lixt that is being amortised over a 10-year period. The remaining $75,000 was assigned to Goodwill. In January of 2021 , the wholly owned subsidiary sold Equipment to the parent for a cash price of 560,000 . The subsidiary had acquired the equipment at a cost of $70,000 and depreciated the equipment over its 10 -year useful ufe using the swaight-line method (no salvage value). The subsidiary had depreciated the equipment for 4 years at the time of sale. The parent retaincd the depreciation policy of the subsidiary and depreciated the equpment over its remaining 6-year useful life. Financial statements of the parent and ins subsidiary for the year ended December 31, 2022 follow in part fi, below. The parent uses the equity miethod to account for its Equity investment. The Customer list was amertized as part of the parent's equity method accounting: a. Prepare the journal entry that the subsidiary made to record the sale of the equipment to the parent, the journal entry that the parent made to record the purctiase, and the (i) entries for the year of sale. th Compute the remainitg portion of one deferred gain on janiaty 1,2022 6. Show the computation to yield the $62,000 of Income (ioss) from subsidiary reported by the parent for the year ended December 31,2022 Note Use a negative sign with an answer to ind cate a reduction in the computation. d. Compute the Equity Investment balance of 3450,000 on December 31,2022 . Note. Use a negatwe sign with an answer to indicate a reduction in the computation. 4. Prepare thie consolidation entries for the year ended December 31,2022 Dranare the consolidation entries for the year ended December 31,2022. f. Prepare the consolidation spreadsheet for the year ended December 31,2022. as and Dividends. Prepare consolidation spreadshect for intercompany sale of equipment - Equity method Assume a parent company acquired its subsidiary on January 1, 2018, at a purchase price that was $185,000 in excess of the book value of the subsidiary 5 Stoekholders' Equity on the acquisition date: Of that excess, $110,000 was assigned to a Customer Lixt that is being amortised over a 10-year period. The remaining $75,000 was assigned to Goodwill. In January of 2021 , the wholly owned subsidiary sold Equipment to the parent for a cash price of 560,000 . The subsidiary had acquired the equipment at a cost of $70,000 and depreciated the equipment over its 10 -year useful ufe using the swaight-line method (no salvage value). The subsidiary had depreciated the equipment for 4 years at the time of sale. The parent retaincd the depreciation policy of the subsidiary and depreciated the equpment over its remaining 6-year useful life. Financial statements of the parent and ins subsidiary for the year ended December 31, 2022 follow in part fi, below. The parent uses the equity miethod to account for its Equity investment. The Customer list was amertized as part of the parent's equity method accounting: a. Prepare the journal entry that the subsidiary made to record the sale of the equipment to the parent, the journal entry that the parent made to record the purctiase, and the (i) entries for the year of sale. th Compute the remainitg portion of one deferred gain on janiaty 1,2022 6. Show the computation to yield the $62,000 of Income (ioss) from subsidiary reported by the parent for the year ended December 31,2022 Note Use a negative sign with an answer to ind cate a reduction in the computation. d. Compute the Equity Investment balance of 3450,000 on December 31,2022 . Note. Use a negatwe sign with an answer to indicate a reduction in the computation. 4. Prepare thie consolidation entries for the year ended December 31,2022 Dranare the consolidation entries for the year ended December 31,2022. f. Prepare the consolidation spreadsheet for the year ended December 31,2022. as and Dividends