Prepare consolidation spreadsheet for intercompany sale of equipment $-$ Equity method

Assume that a parent company acquired its subsidiary on January $1,2012,$ at a purchase price that was

$$300,000$ in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of

that excess, $$200,000$ was assigned to a Customer List that is being amortized over a $10-$year period. The

remaining $$100,000$ was assigned to Goodwill.

In January of $2015,$ the wholly owned subsidiary sold Equipment to the parent for a cash price of

$$120,000.$ The subsidiary had acquired the equipment at a cost of $$140,000$ and depreciated the

equipment over its $10-$year useful life using the straight$-$line method $($no salvage value$).$ The subsidiary

had depreciated the equipment for $4$ years at the time of sale. The parent retained the depreciation

policy of the subsidiary and depreciated the equipment over its remaining $6-$year useful life.

Financial statements of the parent and its subsidiary for the year ended December $31,2016$ follow in

part f$.$ below. The parent uses the equity method to account for its Equity Investment. The Customer List

was amortized as part of the parent's equity method accounting.

b$.$ Compute the remaining portion of the deferred gain on January $1,2016$