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Consolidation several years subsequent to date of acquisition$-$Equity method b$.$ Show the computation to yield the $$168,000$ equity income reported by the parent for the year ended December $31,2022.$

Do not use negative signs with your answers.

c$.$ Show the computation to yield the $$2,520,000$ Equity Investment account balance reported by the parent at December $31,2022.$

Do not use negative signs with your answers.

d$.$ Prepare the consolidation entries for the year ended December $31,2022.$ e$.$ Prepare the consolidated spreadsheet for the year ended December $31,2022.$

Use negative signs with answers in the Consolidated column for Cost of goods sold, Operating expenses and Dividends.

$\backslash$table$[[$Consolidation Worksheet$],[,$Parent,Subsidiary,,Debit,,Credit,,Consolidated$],[,,,,,,,,],[$Sales$,$$$6,720,000,$$$1,820,000,,,,,,$$$0],[$Cost of goods sold,$(4,900,000),(1,083,600),,,,,,0],[$Gross profit,$1,820,000,736,400,,,,,,0],[$Equity income,$168,000,-,$C$,,0,,,0],[$Operating expenses,$(1,008,000),(476,000),$D$,,0,,,0],[$Net income,$$980,000,$$$260,400,,,,,,\backslash$table$[[\backslash$table$[[$$$,0]]]]],[$Statement of retained earnings$],[$BOY retained earnings,$$2,240,000,$$$952,000,$E$,,0,,,$$ $0],[$Net income,$980,000,260,400,,,,,,0],[$Dividends$,(504,000),(50,400),,,,0,$C$,0],[$Ending retained earnings,$$2,716,000,$$$1,162,000,,,,,,$$$0],[$Balance sheet$],[$Assets$],[$Cash$,$$$1,008,000,$$$462,000,,,,,,$$ $0],[$Accounts receivable,$1,582,000,392,000,,,,,,0],[$Inventory$,2,030,000,700,000,,,,,,0],[$Equity investment,$2,520,000,-,,,,0,$C$,0],[,,,,,0,$E$,],[,,,,,0,[$A$],],[$PPE$,$ net,$4,060,000,1,092,000,$A$,,0,0,$D$,0],[$Patent$,,,$A$,,0,0,[$D$],0],[$Licenses$,,,[$A$],,0,0,$D$,0],[$Goodwill$,-,-,$A$,,0,,,0],[$$$11,200,000,$$$2,646,000,,,,,,$$ $0],[$Liabilities and equity$],[$Accounts payable,$$1,064,000,$$$170,800,,,,,,$$ $0],[$Accrued liabilities,$1,176,000,224,000,,,,,,0],[$Long$-$term liabilities,$3,010,000,602,000,,,,,,0],[$Common stock,$854,000,266,000,$E$,$$$,0,,,0],[$APIC$,2,380,000,221,200,[$E$],$$$,0,,,0],[$Retained earnings,$2,716,000,1,162,000,,,-,-,,0],[$$$11,200,000,$$$2,646,000,,$$$,0,0,,$$ $0]]$

Please answer all parts of the question.

Assume a parent company acquired a subsidiary on January $1,2020.$ The purchase price was $$1,148,000$ in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date,

and that excess was assigned to the following A assets:

The $[$A$]$ assets with definite useful lives have been depreciated or amortized as part of the parent's preconsolidation equity method accounting. The Goodwill asset has been tested annually for

impairment, and has not been found to be impaired. The financial statements of the parent and its subsidiary for the year ended December $31,2022,$ are as follows:

a$.$ Compute the Equity Investment balance as of January $1,2022.$

$

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