On January 1, 2015, Parson Company purchases 80% of the common stock of Salary Company for $450,000. On this date, Salary has common stock, other paid-in capital in excess of par, and retained earnings of $50,000, $140,000, and $220,000, respectively.

Any excess of cost over book value is due to goodwill.

In both 2015 and 2016, Parson has accounted for the investment in Salary using the cost method. On January 1, 2016, Salary purchases 1,000 shares (10%) of the common stock of Parson Company from outside investors for $100,000 cash. It is expected that the shares may be resold later. Salary uses the cost method in accounting for the investment.

During the last quarter of 2016, Parson sells merchandise to Salary for $48,000, one-fourth of which is still held by Salary on December 31, 2016. Parson's usual gross profit on intercompany sales is 40%.

The trial balances for Parson and Salary on December 31, 2016, are as follows:

Required
Complete the worksheet for consolidated financial statements for the year ended December 31, 2016. Shares of Parson owned by Salary are to be treated as treasury stock. Round all computations to the nearest dollar include a determination and distribution of excess schedule and income distribution schedule.

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Salary Company 120,000 196,000 Parson Company 170,000 166,000 450,000 Investment in Salary Company . . . 100,000 70,000 280,000 Land 80,000 400,000 (180,000 190o0 74,000) Current Liabilities Long-Term liabilities Common Stock Parson Company ($10 par)_...... 98,000] 0,000 (100,000) (100,000) 200,000) 350,000) Retained Earnings Parson Company (50,000] (140,000] (260,000) Retained Earnings Salary Company 360,000 160,000 (8,000) 40,000 0 200,000 90,000 (2,000] 10,000 0 Operating Expenses Totals ...___. .