85% prices $380,000 Instrucciones 2 y 4 (Balance Sheet)

Problem 3-3 ( LO i) Sophisticated equity method adjustments, consolidated worksheet. (This is the same as Problem 3-2, except that the sophisticated equity method is uacd.) On January 1, 2015, Paro Cormpany purchases 80% of the common sock of Solar Company for $320,000. On this date, Solar has commont 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 yeass for Solar Company 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 temaining excess of cont over book value is atcributable to goodwill. The trial balances for Pato and Solar are as follows: 1. Prepare a value analysis and a determination and distribution of excess schedule. 2. Paro Company carries the investment in Solar Company under the sophisticated equity method. In general journal form, record the entries that would be made to apply the equity method in 2015 and 2016 , 3. Compote the balance that should appear in Investment in Solar Company and in Subaidiary Income on December 31, 2016 (the second year). Fill in these amounts on Paro Companys trial balance for 2016. 4. Complete a workshect for consolidated financial statements for 2016. Include colamns for climinations and adjustments, consolidated incoms, NCl, controlling retained camings. and consolidated balance sheet