help on c, d, e, and f.

I got c right but i wanna know why it's 0.

Prepare consolidation spreadsheet for intercompany sale of equipmentCost method Assume a parent company acquired a subsidiary onianuary 1, 2015 for $576,000. The purchase price was $207,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. 0n the acquisition date, the subsidiary's stockholders equity was comprised of $270,000 of nopar common stock and $99,000 of retained earnings. The Acquisition Accounting Premium (AAP) was assigned as follows: an increase of $9,000 in accounts receivable that were entirely collected during the year after acquisition, an increase of $45,000 for property, plant and equipment that has 10 years of remaining useful life, $72,000 for an unrecorded patent with an 8year remaining life and $81,000 for goodwill. All amortizable components of the AAP are amortized using the straightrline method. OnJanuary 1, 2017, the parent sold Equipment to the subsidiary for a cash price of $89,100. The parent had acquired the equipment at a cost of $84,600 and depreciated the equipment over its 12year usefui life using the straightline method {no salvage value). The parent had depreciated the equipment for 2 years at the time of sale. The subsidiary retained the depreciation policy of the parent and depreciates the equipment over its remaining 10year useful life Following are nancial statements ofthe parent and its subsidiary as of December 31, 2019. The parent uses the cost method of preconsolidation investment bookkeeping. Parent Subsidiary Parent Subsidiary Income statement Balance sheet Sales $900,000 $414,000 Assets Cost of goods sold (495,000) (252,000) Cash $81,000 $54,000 Gross profit 405,000 162,000 Accounts receivable 108,000 81,000 Deprec. 8: amort. Expense (27,000) (18,000) Inventory 252,000 126,000 Operating expenses (270,000) (72,000) Equity investment 576,000 Interest expense (13,500) (4,500) Property, plant 8: equipment 306,000 216,000 Total expenses (310,500) (94,500) Other assets 117,000 198,000 Income (ioss) from subsidiary 31,500 Total assets $1,440,000 $675,000 Net income $126,000 $67,500 Liabilities and stockholders' equity Accounts payable $225,000 $48,600 Statement of retained earnings Accrued liabilities 22,500 41 ,400 BOY retained earnings $495,000 $225,000 Notes payable 135,000 54,000 E Net income 126,000 67,500 Common stock 540,000 270,000 Parent Income statement Sales $900,000 Cost of goods sold (495,000) Gross prot 405,000 Deprec. 8: amort. Expense (21000) Operating expenses (270,000) Interest expense (13,500) Total expenses (310,500) Income (loss) from subsidiary 31,500 Net income $126,000 Statement of retained earnings BOY retained earnings $495,000 Net income 126,000 Dividends (103,500) Ending retained earnings $51?,500 a. Prepare thejournal entry that the parent made to record the sale of the equipment to the subsidiary, the journal entry that the Subsidiary $41 4,000 1 62,000 (18,000) (72,000) (4,500) $67,500 $225,000 67,500 (31 ,500) $261 ,000 (252,000) ( 94, 500) Parent Balance sheet Assets Cash $81,000 Accounts receivable 108,000 Inventory 252.000 Equity investment 576.000 Property, plant 3: equipment 306,000 Other assets 1 17,000 Total assets $1 ,440,000 Liabilities and stockholders' equity Accounts payable $225,000 Accrued liabilities 22,500 Notes payable 135,000 Common stock 540.000 Retained earnings 517,500 Total liabilities and equity $1,440,000 subsidiary made to record the purchase, and the [I] entries for the year of sale. Parent General journal Description Debit Credit Cash 89,100 0 Accumulated depreciation 3 14.100 0 Gain on sale of equipment 3 0 18,600 Equipment 0 84,600 To record sale of equipment Sl'l' Subsidiary $54,000 81 ,000 1 26,000 21 6,000 1 98,000 $676,000 $48,600 41 ,400 54,000 2?0,000 261 ,000 $676,000 Subsidiary General journal Description Debit Credit Equipment 89.100 0 Cash 0 89,100 To record purchase of equipment. Consolidation Journal Description Debit [lgain] Gain on sale of equipment 18,600 0 Equipment 0 4,500 Accumulated depreciation 0 14,100 [ldep] Accumulated depreciation : 1.860 0 Depreciation expense : 0 1.860 b. Compute the remaining portion ofthe deferred gain atjanuary 1, 2019. $ 14,880 c. Prior to preparing consolidated financial statements, compute the amount of equity income the parent would have reported for the year ended December 31, 2019 assuming the parent applied the equity method instead of the cost method of pre consolidation bookkeeping. $0 d. Prior to preparing consolidated financial statements, compute the amount of Equity investment the parent would have reported on December 31, 2019 assuming the parent applied the equity method instead of the cost method of preconsolidation bookkeeping. Do not use negative signs with your answers below. Equity Investment ("as if" Equity Method) 1 Common Stock (S) @ EOY $ 220,000 Retained FamineslSl (a) FO'rIr 261.000 Do not use negative signs with your answers below. Equity Investment ("as if" Equity Method) Common Stock (S) @ EOY $ 270,000 Retained Earnings (S) @ EOY 261,000 Add: Unamortized AAP @ EOY + 0 Deduct: Unconfirmed gain @ EOY 0 EOY Investment ("as if" equity method) $ 0 e. Prepare the consolidation entries for the year ended December 31, 2019. Consolidation Journal Description Debit Credit [ADJ] Equity investment BOY Retained earnings-Parent 0 [C] Income (loss) from subsidiary 0 Dividends [E] BOY Common stock (Subsidiary) BOY Retained earnings-Subsidiary 0 Equity investment [A] PPE, net Patent o o o o o o o ooo ooo OOO Goodwill Equity investment o o o o o o o o o OOO OOO [D] Deprec. & amort. expense PPE, net Patent [Igain] Equity investment PPE, net 0 [!dep] PPE, net Deprec. & amort. expense Of. Prepare the consolidation spreadsheet for the year ended December 31, 2019. Use negative sig with your answers in the Consolidated column for: Cost of goods sold, all expenses (inc. Total expenses) and Dividends. Consolidation Worksheet Parent Subsidiary Debit Consolidated Income statement Sales $900,000 $414,000 $ 0 Cost of goods sold (495,000) (252,000) 0 Gross prot 405,000 162,000 0 Deprec. 8: amort. expense (22,000) (18,000) [D] 0 0 [I dep] 0 Operating expenses (220,000) (22,000) 0 Interest expense (13,500) (4,500) 0 Total Expenses (310,500) (94,500) 0 Income [loss] from subsidiary 31,500 [C] 0 0 Net income $126,000 $6?,500 5 0 Retained earnings statement: BOY retained earnings $495,000 $225,000 [E] 0 0 [ADJ] $ 0 Net income 126,000 62,500 0 Dividends (103,500) (31,500) 0 [C] 0 Ending retained earnings $517,500 $261,000 $ 0 Balance sheet: Assets Cash $81,000 $54,000 $ 0 Accounts receivable 108,000 81,000 0 Inventory 252,000 1 26,000 0 Equity investment 526,000 [ADJ] 0 0 [E] 0 [Igain] 0 0 [A] PPE, net 306,000 216,000 [A] 0 0 [D] 0 [ldep] 0 0 [Igain] Other assets 1 17,000 198,000 0 Dividends (103,500) (31,500) 0 [C] 0 Ending retained earnings $517,500 $261,000 0 Balance sheet: Assets Cash $81,000 $54,000 0 Accounts receivable 108,000 81,000 0 Inventory 252,000 1 26,000 0 Equity investment 576,000 [ADJ] 0 0 [E] 0 [Igain] 0 0 [A] PPE. net 306,000 216,000 [A] 0 0 [D] 0 [Idep] 0 0 [lgain] Other assets 1 17,000 198,000 0 Patent [A] o [D] o Goodwill [A] 0 Total assets $1 ,440.000 $675,000 0 Liabilities 8. stockholders' equity Accounts payable $225,000 $48,600 0 Accrued liabilities 22,500 41,400 0 Notes payable 135,000 54,000 0 Common stock 540,000 270,000 [E] 0 0 EOY Retained earnings 517,500 261,000 0 Total liabilities and equity $1,440,000 $675,000 0 0 0 You have correctly selected 70. Partially correct Marks for this submission: 7.6671500