Problem 1: Prime Corporation acquired 90% of Sub Corporation on January 1, 2014 for $72,000 cash when Sub's stockholders' equity consisted of $30,000 of Capital Stock and $30,000 of Retained Earnings. The difference between the fair value of Sub's assets and liabilities and the book value was allocated to an equipment with a remaining 10-year straight-line life that was overvalued on the books by $5,000. The remainder was attributable to goodwill. The separate company statements for Prime and Sub appear in the first two columns of the partially completed consolidation working papers below.