Sub Co. is a 90 percent-owned company of Parent Co, and was acquired in 2011, when the book value of Sub's net identifiable assets were equal to fair value. Information regarding inventory transactions between Sub Co. and Parent Co. is as follows. 1. In 2013, Sub Co. sold inventories of $5,000,000 to Parent Co. with 20 percent gross profit on it At the end of the year, $200,000 inventories from Sub Co. remained in Parent Co. 2. In 2014, Parent Co. sold inventories of $8,000,000 to Sub Co. The gross profit on the sale was 10%. At the end of the year, $100,000 inventories from Parent Co. were not sold to outside parties. Trial balances for both companies for the year ended December 31, 2014 are as follows (in thousands) Parent Co. Sub Co. Debit Cash $ 1.200 $ 800 Accounts receivable 2,000 300 Dividends receivable 90 Invento 1,000 2,300 Land 2,500 1,300 Equipment 1.200 500 Investment in Sub Co. 3,474 Cost of sales 6,200 3,900 Other expenses 200 Dividends 200 100 Total $ 18,064 $ 9,600 Credits Accounts payable $900 $ 600 Dividends payable 0 100 Common stock 2.500 Retained Earnings 2,764 1,300 Sales 8,400 5.100 Total $ 18,064 $ 9,600 0 0 400 6,000 No dividends were paid by Sub Co. during the year Required: Prepare consolidation workpapers for Parent Co, and Subsidiary for the year ended December 31, 2014