Parker Company acquires an 80% interest in Sargent Company for $300,000 in cash on January 1, 2015, when Sargent Company has 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 and 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 trial balances of the two companies are prepared on December 31, 2015:

Parker Sargent

Current Assets	10,000	130,000
Depreciable Fixed Assets	400,000	200,000
Accumulated Depreciation	(106,000)	(20,000)
Investment in Sargent Company	316,000
Current Liabilities	(60,000)	(40,000)
Common Stock ($10 par)	(300,000)	(100,000)
Retained Earnings, January 1, 2015	(200,000)	(150,000)
Sales	(150,000)	(100,000)
Expenses	110,000	75,000
Subsidiary Income	(20,000)
		5,000
Totals	0	0

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

2. Prepare all the eliminations and adjustments that would be made on the 2015 consolidated worksheet.

3. Prepare the 2015 consolidated income statement and its related income distribution schedules.

4. Prepare the 2015 statement of retained earnings.

5. Prepare the 2015 consolidated balance sheet.