Parker Company acquires an 80% interest in Sargent Company for $300,000 in cash on January 1, 2015, when Sargent Company has the following balance sheet:

The excess of the price paid over book value is attributable to the fixed assets, which have a fair value of $250,000, and to goodwill. The fixed assets have a 10-year remaining life. Parker Company uses the simple equity method to record its investment in Sargent Company.
The following trial balances of the two companies are prepared on December 31, 2015:

1. Prepare a determination and distribution of excess schedule (a value analysis is not needed) for the investment.
2. Prepare all the eliminations and adjustments that would be made on the 2015 consolidated worksheet.
3. Prepare the 2015 consolidated income statement and its related income distribution schedules.
4. Prepare the 2015 statement of retained earnings.
5. Prepare the 2015 consolidated balance sheet.

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Assets Liabilities and Equity $100,000 Current liabilities 50,000 100,000 150,000 300,000 Current assets Depreciable fixed assets (net 200,000 Common stock ($10 par) Retained earnings Total assets $300,000 abilities and equity Parker Sargent 10,000 1 Current Assets Depreciable Fixed Assets Accumulated Depreciation Investment in Sargent Company Current Liabilities. Common Stock ($10 par) Retained Earnings, January 1,2015.... Sales Expenses Subsidiary Income 130,000 00,000200,000 (106,000) (20,000) 316,000 60,000 (40,000 (300,000 (100,000] 200,000 (150,000 (150,000) (100,000! 75,000 110,000 (20,000] 5,000 0) Totals 0)