Prepare consolidation spreadsheet for In

Assume that a parent company acquired a subsidiary on January $1,2012$ for $$892,000.$ The purchase price was $$359,000$ in excess of the

acquisition date. On the acquisition date, the subsidiary's stockholders equity was comprised of $$390,000$ of no$-$par common stock and $$143,000$ of retained earnings. The Acquisition Accounting

Premium $($AAP$)$ was assigned as follows: an increase of $$33,000$ in accounts receivable that were entirely collected during the year after acquisition, an increase of $$65,000$ for property, plant and

equipment that has $10$ years of remaining useful life, $$124,000$ for an unrecorded patent with an $8-$year remaining life and $$137,000$ for goodwill. All amortizable components of the AAP are

amortized using the straight$-$line method.

On January $1,2014,$ the parent sold Equipment to the subsidiary for a cash price of $$134,700.$ The parent had acquired the equipment at a cost of $$130,800$ and depreciated the equipment over its

$12-$year useful life using the straight$-$line method $($no salvage value$).$ The parent had depreciated the equipment for $2$ years at the time of sale. The subsidiary retained the depreciation policy of the

parent and depreciates the equipment over its remaining $10-$year useful life.

Following are financial statements of the parent and its subsidiary as of December $31,2016.$ The parent uses the cost method of pre$-$consolidation investment bookkeeping.