Using the information in the paragraphs above and the trial balance information in the worksheet below prepare journal entries only ( DO NOT COMPLETE THE WORKSHEET) for eliminating current equity ( E), determination and distribution ( D), CY1, CY2, IS, IA, BI, EI. Please show all calculations

ACCT 4118: Advanced Accounting Applications Instructions: Highlight or boldface the correct answer for multiple-choice questions. Show all calculations for multiple-choice and short problem questions. ACCT 4118: Advanced Accounting Applications 1. On January 1, 2016, Parent Company acquired 100% of the common stock of Subsidiary Company for $750,000. On this date Subsidiary had total owners' equity of $540,000. Any excess of cost over book value is attributable to land, undervalued $10,000, and to goodwill. During 2016 and 2017, Parent has appropriately accounted for its investment in Subsidiary using the simple equity method. On January 1, 2017, Parent held merchandise acquired from Subsidiary for $10,000. During 2017, Subsidiary sold merchandise to Parent for $100,000, of which $20,000 is held by Parent on December 31, 2017. Subsidiary's usual gross profit on affiliated sales is 40%. On December 31, 2017, Parent still owes Subsidiary $20,000 for merchandise acquired in December. Required: Using the information in the paragraphs above and the trial balance information in the worksheet below prepare journal entries only ( DO NOT COMPLETE THE WORKSHEET) for eliminating current equity ( E), determination and distribution ( D), CY1, CY2, IS, IA, BI, EI. Please show all calculations for the most points. Account Titles Inventory, December 31 Other Current Assets Investment in Sub. Company Other Long-Term Investments Land Buildings and Equipment Accumulated Depreciation Other Intangibles Current Liabilities Bonds Payable Premium on Bonds Payable Figure 4-3 Trial Balance Parent Sub. Company Company 100,000 80,000 139,000 450,000 880,000 50,000 140,000 315,000 30,000 70,000 400,000 (280,000) (110,000) 60,000 (150,000) (100,000) (100,000) (5,000) Eliminations and Adjustments Debit Credit ACCT 4118: Advanced Accounting Applications