Using chapter 3 solve the following: 1. In January 1, 2014 James Company has acquired 85% of LuLu Company for $2,125,000 on the date of the acquisition the subsidiary had retained earnings $650,000 and a capital of $1,100,000. separate balance sheet as of 1 January 2014 for James and its Subsidiary. Description Parents Subsidiary Cash Receivable Land Property Investment in Subsidiary Total asset 60,000 35,000 1,550,000 1,500,000 35,000 40,000 550,000 1,200,000 2,125,000 5,270,000 1,825,000 Account payable Other liabilities Capital stock Retained earnings Total equity and liabilities 50,000 67,000 3,900,000 1,253,000 60,000 15,000 1,100,000 650,000 5,270,000 1,825,000 a. Record the parent entry in time of acquisition of assets. b. Is there any Goodwill raised from the business combination? If yes compute the amount of Goodwill. c. Using the cost method, record the elimination entries required for consolidation as of January 1, 2014 d. Prepare the consolidated balance sheet as of January 1, 2014. e. Calculate the Investment amount of the parent and Non- controlling interest in the subsidiary as of January 1, 2015, assuming that on the 31st of December 2014, the subsidiary has distributed $10,000 of cash dividends and has a net income of $90,000