Bell Company purchased 60 percent ownership of Troll Corporation on January 1, 2015, for $82,800. On that date, the noncontrolling interest had a fair value of $55,200 and Troll reported common stock outstanding of $100,000 and retained earnings of $20,000. The full amount of the differential is assigned to 10,000 land to be used as a future building site. During 2015 Troll had income of 40,000 and 10,000 paid dividends. Bell uses the fully adjusted equity method in accounting for its ownership of Troll.

Troll sold inventory costing $25,500 to Bell for $42,500 in 2015. Bell resold 80 percent of the purchase in 2015 and the remainder in 2016. Troll sold inventory costing $21,000 to Bell in 2016 for $35,000, and Bell resold 70 percent of it prior to December 31, 2016.

On 1/1/2015 Bell sold equipment with a book value of 9000 to Troll for 12,000. The equipment originally cost Bell 16,000. The equipment has a remaining life of 5 years at 1/1/2015.

1) Prepare an allocation of acquisition value at the time of acquisition to determine any excess value.

2) Record the equity entries made by Bell for 2016.

3) Prepare the analysis and entries required for the worksheet in 2016.