Parrot Inc.acquired an 85% interest in Sparrow Corporation on January 2,2014 for $42,500 cash when Sparrow had Capital Stock of $15,000 and Retained Earnings of $25,000.Sparrow's assets and liabilities had book values equal to their fair values except for inventory that was undervalued by $2,000.Balance sheets for Parrot and Sparrow on January 2,2014,immediately after the business combination,are presented in the first two columns of the consolidated balance sheet working papers. 
Required:
Complete the consolidation balance sheet working papers for Parrot and subsidiary at January 1,2014.
Definitions:
Per Se Violation
A legal doctrine in antitrust law where certain business activities are considered illegal in themselves, regardless of their harm or outcomes.
Antitrust Laws
Legislation enacted to prevent new monopolies from forming and promote competition by prohibiting agreements, practices, or mergers that restrain trade or reduce competition.
Conspiracy
An agreement between two or more persons to commit an illegal act or to accomplish a legal end through illegal actions.
Price-Fixing
An illegal agreement between parties to sell a product at a set price, limiting competition and manipulating the market.
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