On January 1, 20X1, Parent Company Purchased 90% of the Common

On January 1, 20X1, Parent Company purchased 90% of the common stock of Sub-A Company for $90,000. On this date, Sub-A had common stock, other paid-in capital, and retained earnings of $10,000, $20,000, and $60,000 respectively.
On January 1, 20X2, Sub-A Company purchased 80% of the common stock of Sub-B Company for $64,000. On this date, Sub-B Company had common stock, other paid-in capital, and retained earnings of $5,000, $30,000, and $40,000 respectively.
Any excess of cost over book value on either purchase is due to a patent, to be amortized over ten years.
Both Parent and Sub-A have accounted for their investments using the simple equity method.
During 20X2, Sub-B sold merchandise to Sub-A for $20,000, of which one-fourth is still held by Sub-B on December 31, 20X2. Sub-B's usual gross profit is 40%. During 20X3, Sub-B sold more goods to Sub-A for $30,000, of which $10,000 is still on hand on December 31, 20X3.
Required:
Complete the Figure 8-9 worksheet for consolidated financial statements for 20X3.