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Questions A-F and I attached the consolidated worksheet LOG Gross protit_ prepare consolidation spreadsheet intercompany sale equipmentCost method Assurnc a l_urent conqxny acquired a subsidiary

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Questions A-F and I attached the consolidated worksheet

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LOG Gross protit_ prepare consolidation spreadsheet intercompany sale equipmentCost method Assurnc a l_urent conqxny acquired a subsidiary January I. 201S for S_S76.O")_ The purchase price was S207.(XX) in of 'he book value of subsidiarys Slxkholders f@uity lhe aequisilion date. On the acquisition date. subsidiary's stockholders equity was comprised of of par and Of retained Accounting assigned as follows: an increase of S9.000 in accounts receivable that entirely collected during thc year aner acquisition, an increase Of plant and equipment has 10 years Of remaining useful life. S72.O(X) for an unrecorded patent With an 8ycar remaining life and SS for goalwill. All amortinble Of lhe AAP are using lhe straight-line method. On January I . 2017. thc parent sold Equipment to thc subsidiary for a cash price of S". 100. Thc parent acquired the equipment al a cost of SS4.6(X) and depreciated the equipment Over its 12-year useful life using the straight-Jirr method (no salvage value). parent had ckpreiated he equipment for 2 years at the line of The subsidiary retained the depreciation policy of lhe parent and depreci- ate:s the equipnrnt over its remaining IOyear useful life. Follouing ate financial statements Of parent its subsidiary as Of Ikcember 31.2019. The the method Of 8 amyt. . Interest Total expenses statement: a. e. e. Parent (495.0m) (13.5m) (310M") sa%.ca) 126.000 ( '038m) Sub."" S4ta,000 G52,cM) 162,cm (72,000) (9-4 500) sas,ooo 67,500 (31 .sO S261.cxx) BNence 'twot: Cash.... ..... ..... .... Em*' fiveneot.......... net assets.. LiamtA aM Wes *yat. eqtA . Puent s 81.0m '08.1m 252 , OCX' 576.0m 117,om S 225,000 135,mo 517.500 Sub8Wry 21600) 975 ooo ADO S6750m Prepare the nal erury that lhe parent made to record the sale of the equipment to the subsidiary, the journal entry that the subsidiary made to record the purchase, and entries for the year Of sale. Compute the remaining lxution of the deferred gain at January 2019. Prior to preparing consolidated financial statements, mpute the anuunt of income the would have reported for the year ended Lkcembcr 31 , 2019 the parem applied the equity method instead Of Ibe cost method Of beukkeeping. prior to preparing coreeolidated financial statements, compute thc of Equity investnent the parent have reported on (kcember 31.2019 assuming the parent applied equity method instead of cost melinxi of pre-consolidalion txkkeeping. Prepare the consolidation entries for the year ended December 31.2019. prepare the consolidation speadsheet for the year ended Deceuitxr 31, 2019.

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