Assume, on January $1,2018,$ a parent company acquired a $90\%$ interest in its subsidiary. The total fair

value of the controlling and noncontrolling interests was $$660,000$ over the book value of the subsid$-$

iary's Stockholders' Equity on the acquisition date. The parent assigned the excess to the following $[$A$]$

assets:

$90\%$ of the Goodwill is allocated to the parent. The parent and the subsidiary report the following

pre$-$consolidation financial statements at December $31,2022$:

a$.$ Disaggregate and document the activity for the $100\%$ Acquisition Accounting Premium $($AAP$),$

the controlling interest AAP and the noncontrolling interest AAP.

b$.$ Calculate and organize the profits and losses on intercompany transactions and balances.

c$.$ Compute the pre$-$consolidation Equity Investment account beginning and ending balances starting

with the stockholders' equity of the subsidiary.

d$.$ Reconstruct the activity in the parent's pre$-$consolidation Equity Investment T$-$account for the

year of consolidation.

e$.$ Independently compute the owners' equity attributable to the noncontrolling interest beginning

and ending balances starting with the owners' equity of the subsidiary.

f$.$ Independently calculate consolidated net income, controlling interest net income and

noncontrolling interest net income.