Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume a parent company acquired its subsidiary on January 1, 2017, at a purchase price that was $270,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $180,000 was assigned to an unrecorded Patent owned by the subsidiary that is being amortized over a 10-year period. The [A] Patent asset has been amortized as part of the parent's equity method accounting. The remaining $90,000 was assigned to Goodwill. In 2018, the wholly owned subsidiary sold Land to the parent for $108,000. The Land was reported on the subsidiary's balance sheet for $72,000 on the date of sale. The parent uses the equity method to account for its Equity Investment. Financial statements of the parent and its subsidiary for the year ended December 31, 2019 are presented in d. below. a. Show the computation to yield the $45,000 of Income (loss) from subsidiary reported by the parent for the year ended December 31, 2019 Note: Use a negative sign with an answer to indicate a reduction in the computation. Net income of subsidiary AAP depreciation Loss on intercompany sale of land b. Show the computation to yield the $477,000 Equity Investment account balance reported by the parent on December 31, 2019. Note: Use a negative sign with an answer to indicate a reduction in the computation. Common stock APIC EOY Retained earnings EOY Unamortized AAP Gain on intercompany sale Equity investment c. Prepare the consolidation entries for the year ended December 31, 2019. [C] Dividends Consolidation Worksheet Description [E] Common stock APIC [A] Patent [D] [Igain] Debit Credit Use negative signs with answers in the Consolidated column for Cost of goods sold, Operating expenses and Dividends. Consolidated $ Income statement: Parent Sub Dr Elimination Entries Cr Sales $2,700,000 $342,000 Cost of goods sold (1,890,000) (198,000) Gross profit 810,000 144,000 $ Income (loss) from subsidiary 45,000 [C] Operating expenses Net income Statement of retained earnings: (513,000) (81,000) [D] $342,000 $63,000 $ BOY retained earnings Net income $648,000 $177,300 [E] $ 342,000 63,000 Dividends (90,000) (15,300) [C] EOY retained earnings $900,000 $225,000 $ Balance sheet: Assets Cash $234,000 $108,000 $ Accounts receivable 342,000 72,000 Inventory 522,000 135,000 PPE, net Patent Goodwill 1,800,000 193,500 [Igain] [A] [D] [A] Equity investment 477,000 [Igain] [C] [E] [A] $3,375,000 $508,500 $ Liabilities and stockholders' equity Accounts payable Other currentliabilities $201,600 $45,000 248,400 54,000 $ Long-term liabilities Common stock APIC 1,350,000 112,500 360,000 27,000 [E] 315,000 45,000 [E] Retained earnings 900,000 225,000 $3,375,000 $508,500 $ $ Check