Post$-$Acquisition Consolidation Example $($AAP Amortization $-$ Equity Method$)$ On January $1,2022,$ Universal Company acquired United Inc. by issuing $46,000$ shares of its $$1$ par common stock with a market value of $$11$ per share. A building on Universal's books was undervalued by $$30,000$ resulting in annual amortization of $$1,500.$ Also, there was an unrecorded patent valued at $$70,000$ resulting in annual amortization of $$7,500.$ The separate $2022$ financial statements for Universal and United are presented below. Universal Co$.$United Inc.Sales revenue$$760,000$$$420,000$Cost of goods sold$($$$405,000)($$$266,000)$Gross profit$$355,000$$$154,000$Operating expenses$($$$202,200)($$$93,700)$Equity income$$51,800$Net Income$$204,400$$$60,300$Retained Earnings, $1/1/22$$$662,500$$$305,600$Net Income$$204,400$$$60,300$Dividends$($$$41,200)($$$24,650)$Retained Earnings, $12/31/22$$$825,500$$$341,250$Cash and receivables$$199,800$$$161,180$Inventory$$242,450$$$135,090$PP&E $($Net$)$$$745,800$$$304,630$Equity investment in United$$533,150$PatentGoodwillTotal Assets$$1,722,200$$$600,900$Accounts payable$$41,300$$$42,980$Accrued liabilities$$56,400$$$50,070$Notes payable$$93,200$$$33,600$Common stock$$93,200$$$33,600$Additional paid$-$in capital$$705,800$$$43,000$Retained Earnings, $12/31/22$$$825,500$$$341,250$Total Liabilities and Equities$$1,722,200$$$600,900$ Required: a$.$ Prepare the journal entry to record the investment in the subsidiary. b$.$ Show the computation of Equity Income for $2022.$ c$.$ Show the computation of Equity Investment on December $31,2022.$ d$.$ Prepare the consolidating journal entries. e$.$ Complete the following $2022$ consolidation worksheet. Share Export Rewrite