1.Prepare a determination and distribution of excess schedule (a value analysis is not needed) for the investment.

pany on NMd used by the parent, Mast Curpul ise 3 (1O 2) Equity method, first year, eliminations, statements. Parker ures an 80% interest in Sargent Company for $300,000 in cash on January 1, Company acqui when Sargent Company has the following balance sheet: Liabilities and Equity Assets $ 50,000 100,000 150,000 $300,000 $100,000 Current liabilities Current assets Depreciable fixed assets (net) Common stock ($10 par). Retained earnings . 200,000 $300,000 Total liabilities and equity olal assets 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 Parker 10,000 400,000 Sargent 130,000 200,000 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.. (106,000)(20,000) 316,000 (60,000(40,000 (300,000(100,000 (200,000(150,000 75,000 (150,000 (100,000) 110,000 (20,000 5,000 0 Totals 0 1. Prepare a determination and distribution of excess schedule (a value analysis is not needed) for the investment. epare all worksheet. the eliminations and adjustments that would be made on the 2015 consolidated e the 2015 consolidated income statement and its related income distribution schedules. . Prepare the 2015 statement of retained earnings. 5. Prepare the 2015 consolidated balance sheet. Exercise a O