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Parent acquired 100% of Subsidiary on December 31, 20X0, when its net book values and...

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Accounting

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Parent acquired 100% of Subsidiary on December 31, 20X0, when its net book values and fair values were as follows. Term Interest rate Note Receivable 7 4.20% Note Payable 7 4.50% Remaining useful life of equipment Remaining useful life of patent 10 5 Excess 201,000 December 31, 20XO Cash Other assets Equipment Accumulated depreciation Note receivable Patent Goodwill Total Book Value Fair Value $ 98,000 $ 98,000 $ 405,000 405,000 969,000 870,000 (300,000) 66,000 62,000 89,000 107,000 101,200 $ 1,327,000 $ 1,643,2005 (4,000) 18,000 101,200 316,200 Accounts payable Other liabilities Note payable Common stock Additional paid-in capital Retained earnings Total 293,000 293,000 169,000 169,000 106,000 99,600 169,000 1,081,600 513,000 77,000 $ 1,327,000$ 1,643,200 $ (6,400) 322,600 316,200 Determine the following consolidated balances at December 31, 20X1. Parent uses the equity method. Parent Subsidiary Consolidated Interest income 5,500 2,772 Depreciation expense 84,000 66.900 Amortization expense 17,800 Interest expense 20.000 4,770 Net income 97,500 58,302 Dividends declared 24,000 15,000 Equipment 1,271,000 1,017.000 Accumulated depreciation (459,000) (366,900) Patent 71,200 Note receivable 122,000 57,694 Note payable 394,000 92.782

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