Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume that a parent company acquired its subsidiary on January 1, 2011, at a purchase price that was $310,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $210,000 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 $100,000 was assigned to Goodwill. In 2012, the wholly owned subsidiary sold Land to the parent for $95,000. The Land was reported on the subsidiary's balance sheet for $70,000 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, 2013 are presented in d. below: a. Show the computation to yield the $33,500 of Income (loss) from subsidiary reported by the parent for the year ended December 31, 2013. Note: Use a negative sign with an answer to indicate a reduction in the computation. Net income of subsidiary AAP depreciation Income (loss) from subsidiary 51.500 (21,000) 33.500 b. Show the computation to yield the $519,675 Equity Investment account balance reported by the parent on December 31, 2013. Note: Use a negative sign with an answer to indicate a reduction in the computation. Common stock APIC EGY Retained earnings EOY Unamortized AAP Gain on intercompany sale Equity investment 25,000 31,250 241,425 247,000 125.000) 519.675 c. Prepare the consolidation entries for the year ended December 31, 2013. Consolidation Worksheet Description Debit Credit [C] Income (loss) from subsidiary 33,500 0 Dividends 6,825 Equity investment = 0 26.675 [E] Coolock 25.000 0 APIC 0 x 0 BOY retained earnings = 0x 0 Equity investment v 0x IN Patent 0 x 0 Goodwil 0 x Equity investment = 0 0 x [D] Operating expenses A 0 0 Patent 0% Ilgain] Equity investment v 0 04 PFL. not = 0 *