Parent Company acquired 100 percent of Subsidiarys outstanding stock for $9.787,500 cash on January 1, 2023. At the date of acquisition, Subsidiarys balance sheet was as follows.

(Note: Debits are shown as positive, and credits are shown as negative.)

Cash 249,750

Receivables 553,500

Inventory 1,005,750

Land 607,500

Equipment (net) 1,518,750

Software 2,126,250

Liabilities (2,848,500)

Common Stock (2,362,500)

Retained Earnings (850,500)

Certain assets and liabilities had fair values that differed from their book values. The fair values of these were as follows

(note: this is not the difference between fair value and book value; this is the fair value):

Land 540,000

Brand Name (indefinite life) 405,000

Software (2 year life) 2,801,250

IP R&D (10 year life) 2,025,000

Other relevant information: Parents 1/1/2024 retained earnings balance (excluding the effect of any 2023 subsidiary transactions/income) was $6,277,500. The subsidiary had net income of $506,250 and paid no dividends in 2023. There are no intercompany payables/receivables between Parent and Subsidiary. The companies 12/31/2024 trial balances are as follows: Parent Subsidiary Revenues (7,101,000) (2,882,250) Operating Expenses 5,541,750 1,768,500 Income of Subsidiary. ? - Net Income ? (1,113,750) Retained Earnings - Parent, 1/1/2024 ? - Retained Earnings - Subsidiary, 1/1/2024 (1,356,750) Net Income (above) ? (1,113,750) Dividends Declared 1,350,000 236,250 Retained Earnings, 12/31/2024 ? (2,234,250) Cash 1,316,250 641,250 Receivables 1,667,250 965,250 Inventory 2,801,250 1,329,750 Investment in Subsidiary Co. ? - Land 2,301,750 573,750 Equipment (net) 1,620,675 675,000 Software - 2,106,000 Other Intangibles 978,750 - Goodwill Total Assets ? 6,291,000 Liabilities (10,375,425) (1,694,250) Common Stock (3,375,000) (2,362,500) Retained Earnings (above) ? (2,234,250) Total liabilities and equity ? (6,291,000)

Fair Value Allocation Schedule Price Paid 9,787,500 Book Value (3,213,000) Amortization Excess Initial Value 6,574,500 2023 2024 to land (67,500) ? ? to brand name 405,000 ? ? to software 675,000 ? ? to IPR&D 2,025,000 ? ? to goodwill 3,537,000 ? ?

Prepare a workbook to consolidate Parent and Sub's Financial Statements for 2024. The workbook should contain the following:

1. The information contained above, with the fair value allocation schedule completed
2. Calculation of the 12/31/2024 balance of the Investment in Sub account (on Parent's books) using the EQUITY METHOD, the PARTIAL EQUITY METHOD, and the INITIAL VALUE METHOD. Also calculate Parent's 1/1/2024 retained earnings using EACH of these methods.
3. A listing of all consolidation entries necessary under each of the respective methods (equity, partial equity, and initial value).
4. Full Consolidation worksheet using the Equity Method
5. Full Consolidation worksheet using the Partial Equity Method
6. Full Consolidation worksheet using the Initial Value Method