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1. On January 1, 2017, Parent Co., acquired 100 percent of the common stock of Sub Co for $1,000,000 in cash. At that time, the building which had a remaining life of 20 years and was undervalued by 200,000 and they had a patent not recorded on their books of 100,000 with a remaining life of 10 years. Below is the relevant information for Parent Co. and Sub Co.

	Parent Co 12/31/18	Sub Co 12/31/16	Sub Co 13/31/17	Sub Co 13/31/18
Revenues	-1,000,000	-400,000	-450,000	-500,000
Cost of goods sold	400,000	120,000	135,000	150,000
Depreciation expense	100,000	80,000	80,000	80,000
Amortization expense	100,000	-	-	-
Investment income from Sub Co	-250,000	-	-	-
Net income	-650,000	-200,000	-235,000	-270,000
Retained earnings Begin	-1,000,000	-250,000	-400,000	-400,000
Net income	-650,000	-200,000	-235,000	-270,000
Dividends paid	200,000	50,000	235,000	270,000
Retained earnings Ending	-1,450,000	-400,000	-400,000	-400,000
Current assets	240,000	100,000	130,000	160,000
Investment in Sub Co	960,000	0	0	0
Building (net)	3,000,000	450,000	420,000	390,000
Trademark	400,000	100,000	100,000	100,000
Patent	100,000	0	0	0
Goodwill	0	0	0	0
Total assets	4,700,000	650,000	650,000	650,000
Liabilities	-300,000	-50,000	-50,000	-50,000
Common stock	-100,000	-100,000	-100,000	-100,000
Additional paid-in capital	-2,850,000	-100,000	-100,000	-100,000
Retained earnings 12/31/13	-1,450,000	-400,000	-400,000	-400,000
Total liabilities and equity	-4,700,000	-650,000	-650,000	-650,000

a.Calculate the Book value

b. Calculate the amount of goodwill and excess consideration over fair value allocation on the acquisition date if any.

c. Prepare a consolidation worksheet for this business combination using the provided worksheet for the year ended 12/31/2018.

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