Equity method and consolidated financial statements with non-controlling interest. The first two columns of Exhibit 13.17 present information from the accounting records of Parent Company and Sub Company on December 31 of the current year.

Parent Company acquired 80% of the common stock of Sub Company on January 1 of the current year for $96,000 cash. The shareholders' equity of Sub Company on January 1 comprised $50,000 of common stock and $70,000 of retained earnings. Sub Company earned $20,000 and declared and paid dividends of $8,000 during the current year. Insert the amounts in the Consolidated column of Exhibit 13.17 for a consolidated balance sheet and a consolidated income statement for Parent Company and SubCompany.

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Parent Company and Sub Company Information from the Accounting Records on December 31 of the Current Year EXHIBIT 13.17 (Problem 31) Parent Company Sub Company Consolidated ASSETS $ 38,000 $ 12,000 Cash.... Accounts Receivable .. Investment in Sub Company (using equity method) 63,000 32,000 105,600 Other Assets 296,400 $ 503,000 160,000 $204.000 Total Assets LIABILITIES AND SHAREHOLDERS EQUITY Accounts Payable... Bonds Payable . Total Liabilities.. Noncontrolling Interest in Net Assets of Sub Company.. Common Stock.. Retained Earnings... Total Shareholders Equity...... Total Liabilities and Shareholders' Equity..... S 85,000 $ 32,000 150,000 40,000 $ 235,000 $ 72,000 $ 20,000 $ 50,000 248,000 S 268,000 $ 503,000 82,000 $132,000 $204,000 $ 800,000 Sales Revenue $145,000 Equity in Earnings of Sub Company . 16,000 Cost of Goods Sold.. Selling and Administrative Expense Income Tax Expense. (620,000) (85,000) (30,000) $(10,000) $ 20,000 (135,000) (24,000) $ 37,000 Net Income of Consolidated Entity Noncontrolling Interest in Net Income of Sub Company. Net Income. $ 37,000 $ 20,000