the grey spots need the answers

Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume a parent company acquired its subsidiary on January 1, 2017, at a purchase price that was $270,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $180,000 was assigned to an unrecorded Patent owned by the subsidiary that is being amortized over a 10-year period. The [A] Patent asset has been amortized as part of the parent's equity method accounting. The remaining $90,000 was assigned to Goodwill. In 2018, the wholly owned subsidiary sold Land to the parent for $108,000. The Land was reported on the subsidiary's balance sheet for $72,000 on the date of sale. The parent uses the equity method to account for its Equity Investment. Financial statements of the parent and its subsidiary for the year ended December 31, 2019 are presented in d. below. a. Show the computation to yield the $45,000 of Income (loss) from subsidiary reported by the parent for the year ended December 31, 2019 Note: Use a negative sign with an answer to indicate a reduction in the computation. Net income of subsidiary Support b. Show the computation to yield the $477,000 Equity Investment account balance reported by the parent on December 31, 2019. Note: Use a negative sign with an answer to indicate a reduction in the computation. Common stock APIC EOY Retained earnings EOY Unamortized AAP Gain on intercompany sale Equity investment O O c. Prepare the consolidation entries for the year ended December 31, 2019. c. Prepare the consolidation entries for the year ended December 31, 2019. Consolidation Worksheet Description Debit Credit [C] Dividends [E] Common stock APIC [A] Patent Support [D] [lgain] o d. Prepare the consolidation spreadsheet for the year ended December 31, 2019. Use negative signs with answers in the Consolidated column for Cost of goods sold, Operating expenses and Dividends. Elimination Entries Income statement: Parent Sub Dr Consolidated Sales $2,700,000 $342,000 Cost of goods sold (1,890,000) (198,000) Gross profit 810,000 144,000 Income (loss) from subsidiary 45,000 [C] 000 45,000 (513,000) (81,000) $342,000 $63,000 [D] [E] $648,000 $177,300 342,000 63,000 (90,000) (15,300) $900,000 $225,000 O [C] $ 0 Income loss) from subsidiary Operating expenses Net income Statement of retained earnings: BOY retained earnings Net income Dividends EOY retained earnings Balance sheet: Assets Cash Accounts receivable Inventory PPE, net Patent Goodwill Equity investment $234,000 $108,000 342,000 72,000 522,000 135,000 1,800,000 193,500 Support o [lgain] 0 [D] [A] [A] 477,000 [lgain] 0 0 [C] 0 [E] O [A] $3,375,000 $508,500 Liabilities and stockholders' equity Accounts payable Other currentliabilities Long-term liabilities Common stock APIC Retained earnings $201,600 $45,000 248,400 54,000 1,350,000 112,500 360,000 27,000 315,000 45,000 900,000 225,000 $3,375,000 $508,500 0 $ ^ 1 4/3/2020 D Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume a parent company acquired its subsidiary on January 1, 2017, at a purchase price that was $270,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $180,000 was assigned to an unrecorded Patent owned by the subsidiary that is being amortized over a 10-year period. The [A] Patent asset has been amortized as part of the parent's equity method accounting. The remaining $90,000 was assigned to Goodwill. In 2018, the wholly owned subsidiary sold Land to the parent for $108,000. The Land was reported on the subsidiary's balance sheet for $72,000 on the date of sale. The parent uses the equity method to account for its Equity Investment. Financial statements of the parent and its subsidiary for the year ended December 31, 2019 are presented in d. below. a. Show the computation to yield the $45,000 of Income (loss) from subsidiary reported by the parent for the year ended December 31, 2019 Note: Use a negative sign with an answer to indicate a reduction in the computation. Net income of subsidiary Support b. Show the computation to yield the $477,000 Equity Investment account balance reported by the parent on December 31, 2019. Note: Use a negative sign with an answer to indicate a reduction in the computation. Common stock APIC EOY Retained earnings EOY Unamortized AAP Gain on intercompany sale Equity investment O O c. Prepare the consolidation entries for the year ended December 31, 2019. c. Prepare the consolidation entries for the year ended December 31, 2019. Consolidation Worksheet Description Debit Credit [C] Dividends [E] Common stock APIC [A] Patent Support [D] [lgain] o d. Prepare the consolidation spreadsheet for the year ended December 31, 2019. Use negative signs with answers in the Consolidated column for Cost of goods sold, Operating expenses and Dividends. Elimination Entries Income statement: Parent Sub Dr Consolidated Sales $2,700,000 $342,000 Cost of goods sold (1,890,000) (198,000) Gross profit 810,000 144,000 Income (loss) from subsidiary 45,000 [C] 000 45,000 (513,000) (81,000) $342,000 $63,000 [D] [E] $648,000 $177,300 342,000 63,000 (90,000) (15,300) $900,000 $225,000 O [C] $ 0 Income loss) from subsidiary Operating expenses Net income Statement of retained earnings: BOY retained earnings Net income Dividends EOY retained earnings Balance sheet: Assets Cash Accounts receivable Inventory PPE, net Patent Goodwill Equity investment $234,000 $108,000 342,000 72,000 522,000 135,000 1,800,000 193,500 Support o [lgain] 0 [D] [A] [A] 477,000 [lgain] 0 0 [C] 0 [E] O [A] $3,375,000 $508,500 Liabilities and stockholders' equity Accounts payable Other currentliabilities Long-term liabilities Common stock APIC Retained earnings $201,600 $45,000 248,400 54,000 1,350,000 112,500 360,000 27,000 315,000 45,000 900,000 225,000 $3,375,000 $508,500 0 $ ^ 1 4/3/2020 D