Need help with this question. See problem and spreadsheet attached.

On January 1, 2014, Pontiac Company acquired an 80% interest in the common stock of Stark Company for $400,000. Stark had the following balance sheet on the date of acquisition: Stark Company Balance Sheet January 1, 2014 Assets Liabilities and Equity Accounts receivable $ 40,000 Accounts payable $ 42,297 Inventory 20,000 Bonds payable 100,000 Land 35,000 Discount on bonds payable (2,297) Buildings 250,000 Common stock ($10 par) 10,000 Accumulated depreciation (50,000) Paid-in capital in excess of par 90,000 Equipment 120,000 Retained earnings 115,000 Accumulated depreciation (60,000) Total assets $355,000 Total liabilities and equity $355,000 Buildings (20-year life) are undervalued by $80,000. Equipment (5-year life) is undervalued by $50,000. Any remaining excess is considered to be goodwill. Stark issued $100,000 of 8%, 10-year bonds for $96,719 on January 1, 2011. Annual interest is paid on December 31. Pontiac purchased the bonds on January 1, 2015, for $104,770. Both companies use the straight-line method to amortize the premium/discount on the bonds. Pontiac and Stark used the following bond amortization schedules: Stark Pontiac Period 1/2011 1/2012 1/2013 1/2014 1/2015 1/2016 1/2017 1/2018 1/2019 1/2020 1/2021 Cash Interest $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,328 8,328 8,328 8,328 8,328 8,328 8,328 8,328 8,328 8,328 Balance $ 96,719 97,047 97,375 97,703 98,031 98,359 98,687 99,015 99,343 99,671 100,000 Period 1/2011 1/2012 1/2013 1/2014 1/2015 1/2016 1/2017 1/2018 1/2019 1/2020 1/2021 Cash Interest Balance $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 7,205 7,205 7,205 7,205 7,205 7,205 104,770 103,975 103,180 102,385 101,590 100,795 $100,00 0 Refer to the preceding facts for Pontiac's acquisition of 80% of Starks common stock and the bond transactions. Pontiac uses the simple equity method to account for its investment in Stark. On January 1, 2015, Stack held merchandise acquired from Pontiac for $15,000. During 2015, Pontiac sold $50,000 worth of merchandise to Stark. Stark held $20,000 of this merchandise at December 31, 2015. Stark owed Pontiac $10,000 on December 31 as a result of these intercompany sales. Pontiac has a gross profit rate of 30%. Pontiac and Stark had the trial balances on December 31, 2015, shown on next page. Cash Accounts Receivable Inventory Land Investment in Stark Investment in Stark Bonds Buildings Accumulated Depreciation Equipment Accumulated Depreciation Accounts Payable Bonds Payable Discount on Bonds Payable Common Stock Paid-In Capital in Excess of Par Retained Earnings, January 1, 2015 Sales Cost of Goods Sold Depreciation ExpenseBuildings Depreciation ExpenseEquipment Other Expenses Interest Revenue Pontiac Company 17,870 90,000 100,000 150,000 435,738 103,975 500,000 (300,000) 200,000 (100,000) (55,000) (100,000) (600,000) (400,000) (600,000) 410,000 30,000 15,000 109,360 (7,205) Stark Company 32,031 60,000 30,000 45,000 250,000 (70,000) 120,000 (84,000) (25,000) (100,000) 1,641 (10,000) (90,000) (145,000) (220,000) 120,000 10,000 12,000 45,000 Interest Expense Subsidiary Income Divedends Declared Totals 8,328 (19,738) 20,000 0 10,000 0 Prepare the worksheet necessary to produce the consolidated financial statements for Pontiac Company and its subsidiary Stark Company for the year ended December 31, 2015. Include the determination and distribution of excess and income distribution schedules. Purchase Price Cash Number of shares exchanged Par value of a share of stock Market value of a share of stock Market value of stock exchanged Total purchase price Ownership Interest enter as . 7 for 70% Goodwill Applicable to NCI Implied Value of NCI Interest Estimated Value of NCI interest if not the implied proportional amount--Enter amount or 0 Method of Accounting for Investment--Enter Capital C for Cost or Capital E for Equity - E Years since Acquisition Intercompany Merchandise Information Parent Sales Subsidiary Sales Parent % Current Year Sales Unpaid Account Balance, at year end Beginning Inventory Ending Inventory 15,000 20,000 30.00 30.00 4,500 6,000 Intercompany Fixed Asset Sales By Parent Type of Fixed Asset--Enter in Columns B or C Enter 1 for Land Enter 2 for Buildings Enter 3 for Equipment Profit Amount By Sub Life of Asset--leave blank for land Year of Sale (Assume Beginning of Year) Intercompany Bond Information Maturity Value Face Interest Rate (Enter .08 for 8%,.075 for 7.5%) Original Years to Maturity Year Bond Issued (Assume January Issuance) Issue Rate Year Bond Purchased (Assume January Purchase)) Purchase Rate (if effective interest amortization) Face Value Purchased Method of Amortization (Enter capital S for Straight-line and capital E for Effective Interest in Column B.) Issue Price Purchase Price If the bonds were purchased the current year enter 1. If the bonds were purchased in a previous year enter 2. Month Interest Paid January =1, December=12) Subsidiary %