Q1: Equity Method Acquisition and Consolidating Entries Raliegh Co. acquires, at book value, Westwood Enterprises on January 2, 2020, by issuing 35,000 common shares, $1 par, with a market value on the acquisition date of $20 per share. The separate financial statements of the parent and subsidiary, for the year ended December 31, 2020, are presented below. a. Prepare the journal entry on Raliegh's books to record the acquisition. b. Prepare a schedule showing how the balance in Equity Investment was arrived at. C. Prepare all consolidation entries for the year ending December 31, 2020. d. Show the consolidated Net Income balance at December 31, 2020. Sales revenue Cost of goods sold Gross profit Operating expenses Equity income Net Income Ralieah $ 740,000 (518,000) 222.000 (140,600) 58.800 $ 140.200 Westwood $420,000 (252.000) 168,000 (109,200) $ 58.800 $ 470,400 140,200 (28.040) $ 582.560 $217,000 58,800 (8.820) $266.980 $ 270,200 143,560 749,980 $205,660 125,160 542.568 Retained Earnings, 1/1/20 Net income Dividends Retained Earnings, 12/31/20 Cash and receivables Inventory Equity investment Property, plant & equipment (Net) Total Assets Accounts payable Accrued liabilities Notes payable Common stock Additional paid-in capital Retained Earnings, 12/31/10 Total Liabilities and Equities 231,560 $562380 $1.706.308 S 124,168 64,380 350,000 103,600 481,600 582.560 $1.706 308 $ 40,040 52,360 140,000 25,000 38,000 266,980 $562.380