show formulas

Problem 1 Parent acquired 35,000 shares of Sub stock on January 1, 2017 at a price of $34 per share. At the date of acquisition Sub had the following Stockholders Equity Common Stock ($10 par) Paid in Capital Retained Earnings $ 500,000 200,000 680,000 At the date of acquisition, the sub had the following differences between book and fair values. Book Fair Value Value Inventory 413,000 503,000 (Sold in 2017) Patents 240,000 210,000 (7 Yr Rem Life) Equipment, net 618,000 722,000 (5 Yr Re ing Life) The Sub pays the Parent an annual management fee of $40,000. REQUIRED: Complete the attached consolidation workpapers for the year ended December 31, 2020. Problem 1 Parent acquired 35,000 shares of Sub stock on January 1, 2017 at a price of $34 per share. At the date of acquisition Sub had the following Stockholders Equity Common Stock ($10 par) Paid in Capital Retained Earnings $ 500,000 200,000 680,000 At the date of acquisition, the sub had the following differences between book and fair values. Book Fair Value Value Inventory 413,000 503,000 (Sold in 2017) Patents 240,000 210,000 (7 Yr Rem Life) Equipment, net 618,000 722,000 (5 Yr Re ing Life) The Sub pays the Parent an annual management fee of $40,000. REQUIRED: Complete the attached consolidation workpapers for the year ended December 31, 2020