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On January $1,$ Year $4,$ Parent Inc. acquired $100\%$ of Subsidiary Holdings' common stock for $$200,000.$ The

provisional fair value of the net assets acquired totaled $$190,000,$ and the book value totaled $$170,000$ at

the date of acquisition.

As the controller, you are preparing the December $31,$ Year $4,$ consolidated financial statements of Parent

Inc. Assume that Parent accounts for its investment in Subsidiary Holdings using the equity method of

accounting.

REQUIRED: Using the provided exhibits, complete the consolidating eliminating journal entries required on

December $31,$ Year $4.$

As of $\frac{1}{1}\frac{?}{2024}$

As of $12/31/2024$

SUBSIDIARY PRESS RELEASE

A meeting of the Board of Directors of Subsidiary, Inc., held January $5,$ Year $5,$ has approved the payment

of the announced dividend for the fiscal period January $1$ to December $31,$ Year $4.$

Details of the Dividend:

Total Dividend USD $$8,000\mathrm{.}00$

The dividend will be paid to all stockholders of record on December $31,$ Year $4.$

No withholding taxes are imposed on the dividends.

The Board of Directors, Subsidiary, Inc.

VALUATION LETTER

November $25,$ Year $4$

Dear Parent Company:

Thank you once again for engaging our firm to perform a valuation analysis related to your company$$s

acquisition of Subsidiary, Inc. earlier this year. I wanted to follow up from our initial report now that we have

finalized the fair values related to the acquisition.

As already communicated, we reviewed Subsidiary, Inc.$$s financial statements dated December $31,$ Year

$3,$ and determined the provisional values below that you initially used for consolidation purposes. We have

now determined final fair values that should be considered in your accounting records as the acquisition

was less than one year ago.

Inventories:

Book value $$70,000$

Fair value $($provisional$)$ $$75,000$

Fair value $($final$)$ $$75,000$

Land:

Book value $$30,000$

Fair value $($provisional$)$ $$45,000$

Fair value $($final$)$ $$50,000$

The assumptions and methodologies used to determine the final estimated fair values listed above are

detailed in the forthcoming report that will be mailed to you. Should you have any questions after review of

the report, please do not hesitate to reach out to me$.$

Best regards,

Dr$.$ Stacy Boyer$-$Davis

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