Parker Company acquires an 80% interest in Sargent Company for $300,000 cash on January 1, 2015, when Sargent Company had the following balance sheet: Assets Liabilities and Equity Current assets $ 100,000 Current liabilities $ 50,000 Depreciable fixed assets (net) 200,000 Common Stock ($10 par) 100,000 Retained earnings 150.000 Total assets $ 300,000 Total liabilities & equity $300,000 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 information is also available: Sargent total net income: $25,000 Sargent total dividends declared: $ 5,000 Required: 1. Prepare the journal entries required on the books of Parker Company to record Sargent's 2015 net income and dividends. 2. Prepare a determination and distribution of excess schedule for the investment in Sargent Company. 3. Prepare all elimination and adjustment entries that would be required on the 2015 consolidated worksheet. Tax Drill - Recovery Limitation On February 17, 2020, Brecken places in service an automobile that cost $23,000. Assume Brecken does not claim the additional first-year or any 5 179 deduction. The auto is used 35% for business and 65% for personal use. Assume the luxury automobile limitations for Year 1 is $10,100 Click here to access the depreciation table to use for this problem, a. Compute the total depreciation allowed for 2020: b. Assume that the automobile cost $45,000. Compute the total depreciation allowed for 2020