Assuma parent company acquires an 80% interest in its subsidiary for a purchase price that was...

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Assuma parent company acquires an 80% interest in its subsidiary for a purchase price that was 5420,000 over the book value of the subsidiary's Stockholders' Equity on January 1, 2001. On the acquisition date, the parent signed the ass fair value to the following (A): AAP Item Property, plant, and equipment (PPE) Re Initial Fair Value Useful $240,000 20 Life 100,000 10 yar $420,000 The parent and the subsidiary report the following financial statements for the year ended December 31, 2004: Parent Subsidiary Income statement Balance sheet: $7,500,000 $1,500,000 Cost of good (6,000,000) (900,000) Cash Gross profe 1,500,000 GO0,000 Ac Equity income 150,000 Inventory Opening Nec income (900,000) (382,500) Equity invent $750,000 $217,500 Parent Subsidiary $900,000 $450,000 1,050,000 300,000 1,350,000 c00000 1,175,000 4,500,000 1,050,000 50,976,000 $2,400.000 Statement of retained earnings: Geginning reading Labs and Stockholders Equity $3,000,000 $757,500 Cuent $750,000 $300,000 Net income Dividends 750.000 1200,000) (75,000) Commen 217,500 Long-term lab 1,625,000 05.000 1,350,000 90,000 GOY indemnings $3,450,000 $900,000 APIC 1,000,000 180.000 Rednings 2,450,000 000,000 $8,976,000 $2,400,000 Required Prepare the consolidation financial statements for the year ended December 31, 2014. Not give signs with your answers, when appropriate Income statement Consolidated 0000000 Cost of goods sold Gross profe -G900000 2100000 Equity income 0 (1,312,500 Net income 787500 Nattributable to noncong 37500 825000 Natributable to parent Statement of retained earnings: BOY retained ins Nec income Dividends GOV rained earnings Balance sheet: A Cash Accounts receivable Equity investment Property, plant, and equipment (PPS), Re T Labs and acqu Current labe Long-term lab Common mack APIC 2000000 750000 -300000 3450000 1350000 1350000 1950000 0 5742000 100000 10500000 1050000 2556000 1300000 1000000 3450000 Nonconing interes Tablandokholders' equity 15091500 Assuma parent company acquires an 80% interest in its subsidiary for a purchase price that was 5420,000 over the book value of the subsidiary's Stockholders' Equity on January 1, 2001. On the acquisition date, the parent signed the ass fair value to the following (A): AAP Item Property, plant, and equipment (PPE) Re Initial Fair Value Useful $240,000 20 Life 100,000 10 yar $420,000 The parent and the subsidiary report the following financial statements for the year ended December 31, 2004: Parent Subsidiary Income statement Balance sheet: $7,500,000 $1,500,000 Cost of good (6,000,000) (900,000) Cash Gross profe 1,500,000 GO0,000 Ac Equity income 150,000 Inventory Opening Nec income (900,000) (382,500) Equity invent $750,000 $217,500 Parent Subsidiary $900,000 $450,000 1,050,000 300,000 1,350,000 c00000 1,175,000 4,500,000 1,050,000 50,976,000 $2,400.000 Statement of retained earnings: Geginning reading Labs and Stockholders Equity $3,000,000 $757,500 Cuent $750,000 $300,000 Net income Dividends 750.000 1200,000) (75,000) Commen 217,500 Long-term lab 1,625,000 05.000 1,350,000 90,000 GOY indemnings $3,450,000 $900,000 APIC 1,000,000 180.000 Rednings 2,450,000 000,000 $8,976,000 $2,400,000 Required Prepare the consolidation financial statements for the year ended December 31, 2014. Not give signs with your answers, when appropriate Income statement Consolidated 0000000 Cost of goods sold Gross profe -G900000 2100000 Equity income 0 (1,312,500 Net income 787500 Nattributable to noncong 37500 825000 Natributable to parent Statement of retained earnings: BOY retained ins Nec income Dividends GOV rained earnings Balance sheet: A Cash Accounts receivable Equity investment Property, plant, and equipment (PPS), Re T Labs and acqu Current labe Long-term lab Common mack APIC 2000000 750000 -300000 3450000 1350000 1350000 1950000 0 5742000 100000 10500000 1050000 2556000 1300000 1000000 3450000 Nonconing interes Tablandokholders' equity 15091500