Problem I. (60 points). Paramount Corporation owns 100 percent of Sacker Company. Paramount acquired Sacker on January 1, 2016, where the fair value of the net assets and book value were the same. The resulting excess fair value was allocated to a trademark for $110,000 (indefinite life), with the remainder allocated to a client list for $400,000 (20-year remaining life at acquisition date). No goodwill resulted from this acquisition. The following intra-entity transactions occurred in 2019: ? Paramount had sold inventory to Sacker in 2018 for $40,000. The inventory cost Paramount $30,000. At December 31, 2018, Sacker had sold approximately sixty (60) percent of the goods. The remaining inventory was sold to outside customers in 2019. Paramount sold inventory to Sacker in 2019 for $50,000. The inventory cost Paramount $40,000. At December 31, 2019, Sacker had sold approximately eighty (80) percent of the goods. The remaining inventory was sold to outside customers in 2020.On March 1, 2018, Paramount transferred Land to Sacker for $280,000; Paramount acquired the land in 2002 for $200,000. Sacker borrowed $280,000 from Paramount as a result of the transfer. On January 1, 2018, Paramount transferred equipment with a book value of $80,000 to Sacker for $120,000; the equipment has a remaining useful life of ten (10) years. Paramount acquired the equipment at $140,000. In addition to the intra-entity transactions above, during 2019, Sacker declared and paid a $12,000 dividend; the subsidiary also had net income of $130,000. At January 1, 2019, Sacker's equity consisted of common stock $180,000, additional paid-in capital, $20,000, and retained earnings, $140,000.

Instructions: 1. Prepare the 2019 consolidation worksheet entries. Show all of your calculations in good form, properly labeled.

2. Using the worksheet entries in 1, calculate the consolidated balances for the following selected accounts: