Show me the steps to solve Following are separate financial statements of Michael Company and Aaron Company as of December $31,2024($credit balances

indicated by parentheses$).$ Michael acquired all of Aaron's outstanding voting stock on January $1,2020,$ by issuing $20,000$ shares of its

own $$1$ par common stock. On the acquisition date, Michael Company's stock actively traded at $$31\mathrm{.}50$ per share.

On the date of acquisition, Aaron reported retained earnings of $$390,000$ and a total book value of $$520,000.$ At that time, its royalty

agreements were undervalued by $$60,000.$ This intangible was assumed to have a six$-$year remaining life with no residual value.

Additionally, Aaron owned a trademark with a fair value of $$50,000$ and a $10-$year remaining life that was not reflected on its books.

Aaron declared and paid dividends in the same period.

Required:

a$.$ Using the preceding information, prepare a consolidation worksheet for these two companies as of December $31,2024.$

b$.$ Assuming that Michael applied the equity method to this investment, what would the Equity in Subsidiary Earnings, Retained

Earnings, and Investment account balances be on the parent's individual financial statements?