Proprio Company acquires 100% of Ception Company for $635,000 on January 1, 2018. Ception reported common stock of $300,000, no additional paid-in capital, and retained earnings of $257,000 on that date. Equipment was undervalued by $18,000 and it had a 2-year remaining life, while its only building was undervalued by $45,000 and it had a 9-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on annual reviews, goodwill has not been impaired. Ception earns income and pays dividends as follows:

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Proprio Company acquires 100% of Ception Company for $635,000 on January 1, 2018. Ception reported common stock of $300,000, no additional paid-in capital, and retained earnings of $257,000 on that date. Equipment was undervalued by $18,000 and it had a 2-year remaining life, while its only building was undervalued by $45,000 and it had a 9-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on annual reviews, goodwill has not been impaired. Ception earns income and pays dividends as follows: Net income Dividends 2018 $80,000 36,000 2019 $106,000 42,000 2020 $72,000 22,000 Proprio is using equity method for its investment in Ception. Prepare consolidation journal entries for the following dates: 1. 12.31.2018 (5 points) 2. 12.31.2019 [8 points) 3. 12.31.2020 [7 points)