I just need the consolidation entries and the consolidation spreadsheet parts D and E 48. Consolidation at the end of the first year subsequent to date of acquisition-Equity methodAssume theparent company acquires its subsidiary on January 1, 2019, by exchanging 59.000 shares ofits $1 par value Common Stock, with a market value on the acquisition date of $30 per share, for all ofthe outstanding voting shares of the acquiree. You have been charged with preparing the consolidationof these two companies at the end of the first year.On the acquisition date, all of the subsidiary's individual net assets had fair values that equaledtheir book values except for the following: PPE assets are undervalued by $120,000 (depreciation$10,000 per year), and the subsidiary has an unrecorded Patent that has a fair value of $320,000 (amor-tization = $40,000 per year). Any remaining difference between the purchase price and the fair value ofthe identifiable assets results from expected synergies that are expected to be realized as a result of thebusiness combination.%3D%3DFollowing are financial statements of the parent and its subsidiary for the year ended December 31,2019:ParentSubsidiaryParentSubsidiaryIncome statement:Balance sheet:Sales.$5,500,000$1,600,000AssetsCost of goods soldCash$ 300,000$ 120,000....Gross profit.Accounts receivableEquity income.Operating expenses.150,000Inventory940,000....(450,000) Equity investment.Net income$ 850,000$ 200,000Property, plant and equipment (PPE), net3,400,000920,000$7,200,000$2,000,000Statement of retained earnings:Beginning retained eanings... $2,800,000Net incomeLiabilities and stockholders' equityAccounts payable.Accrued liabilities$ 800,000200,000$ 220,000340.000$ 100,000850,000Dividends450,000Long-term liabilities.Common stockAPIC.Ending retained eamings$3,490,000$ 940,000150,000200,000940,0002,100,000to 00Retained earnings3,490,000$7,200,000$2,000,000Prepare the journal entry to record the acquisition of the subsidiary.Show the computations to yield the equity income of $150,000 reported by the parent in itsa.b.income statement.Show the computations to yield the Equity Investment reported by the parent in the amount of$1,860,000.C.d. Prepare the consolidation entries for the year ended December 31, 2019.e.Prepare the consolidated spreadsheet for the year ended December 31, 2019.What additional assets have been recognized on the consolidated balance sheet that were notexplicitly reported on the balance sheets of either the parent or the subsidiary? Why were they notpreviously reported in pre-acquisition financial statements of the parent or the subsidiary?

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48. Consolidation at the end of the first year subsequent to date of acquisition-Equity method Assume the parent company acquires its subsidiary on January 1, 2019, by exchanging 59,000 shares of its SI par value Common Stock, with a market value on the acquisition date of $30 per share, for all of the outstanding voting shares of the acquiree. You have bcen charged with preparing the consolidation of these two companies at the end of the first year. On the acquisition date, all of the subsidiary's individual net assets had fair values that equaled their book values except for the following: PPE assets are undervalued by $120,000 (depreciation = S10,000 per year), and the subsidiary has an unrecorded Patent that has a fair value of $320,000 (amor- tization = $40,000 per year). Any remaining difference between the purchase price and the fair value of the identifiable assets results from expected synergies that are expected to be realized as a result of the business combination. Following are financial statements of the parent and its subsidiary for the year ended December 31. 6107 Parent Subsidiary Parent Subsidiary Income statement: Sales. Balance sheet: $5,500,000 Assets 000'009'ıŞ ...... ... Cost of goods sold Cash (000'os6) Accounts receivable. 000'00e $ 000'021 S Gross profit. 000'002'L 650,000 000'004 000'09E Equity income. Operating expenses Inventory..... (000'0s৮)। Equity investment. Property, plant and equipment (PPE), net. .. 000'06 000'098' 000'009 000'0sL (000'000'1) $ 200,000 Net income $ 850,000 000'026 000'00t'E $7.200,000 000'000 2s Statement of retained earnings: 000'008 S Liabilities and stockholders' equity Beginning retained eanings. Net income Dividends 000'008 000'08 000'00z Accounts payable. (000'09) Accrued liabilities $ 220,000 340,000 000'001 S (000'091) $ 940,000 000'08 Long-term liabilities. Common stock Ending retained eamings. $3,490,000 000'0s 000'0E 150,000 000'009 000'007 000'0t6 2,100,000 APIC....... Retained earnings 000'066'E %247.200,000 000'000'zs Prepare the journal entry to record the acquisition of the subsidiary. a. b. Show the computations to yield the equity income of $150,000 reported by the parent in its income statement. Show the computations to yield the Equity Investment reported by the parent in the amount of $1,860,000. Prepare the consolidation entries for the year ended December 31, 2019. Prepare the consolidated spreadsheet for the year ended December 31, 2019. What additional assets have been recognized on the consolidated balance sheet that were not explicitly reported on the balance sheets of either the parent or the subsidiary? Why were they not previously reported in pre-acquisition financial statements of the parent or the subsidiary? e.