On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common stock, other paid-in capital in excess of par, and retained earnings of $50,000, $100,000, and $150,000, respectively. Net income and dividends for two years for Solar are as follows:

On January 1, 2015, the only undervalued tangible assets of Solar are inventory and the building. Inventory, for which FIFO is used, is worth $10,000 more than cost. The inventory is sold in 2015. The building, which is worth $30,000 more than book value, has a remaining life of 10 years, and straight-line depreciation is used. The remaining excess of cost over book value is attributed to goodwill.
1. Using this information and the information in the following trial balances on December 31, 2016, prepare a value analysis and a determination and distribution of excess schedule:

2. Complete a worksheet for consolidated financial statements for 2016. Include columns for eliminations and adjustments, consolidated income, NCI, controlling retained earnings, and consolidated balance sheet.

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2015 2016 $60,000 $90,000 Net income Dividends 20,000 30,000 Solar Inventory, December 31 Other Curent Assets Investmentin Solar Company Land Buildings and Equipment Accumulated Depreciation Goodwill Other Intangibles Current Liabilities 100,000 50,000 136,000 180,000 400,000 50,000 50,000 350,000 320,000 (100,000) (60,000] 20,000 120,000) 40,000] Bonds Payable. Other Long Term Liabilities Common Stock Paro Company Other PaidHn Capital in Excess of Par-Paro Company Retained Earnings-Paro Company Common Stock-Solar Company Other Paid n Capital in Excess of Par-Solar Company. Retained Earnings-Solar Company. Net Sales Cost of Goods Sold Operating Expen ses Subsidiary Income. Dividends Declared-Paro Company Dividend s Declared-Solar Company (100,000] (200,000 200,000 (100,000) 14,()()( (50,000] (100,000 (190,000 (520,000 (450,000] 300,000 260,000 120,000 100,000 (72,000 50,000 30,000 0) 0)