Problem 3-2 (LO 2) Simple equity method adjustments, consolidated work- sheet. On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common 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 years for Solar are as follows:

Problem 3-2 (ZO 2) Simple equity method adjustments, consolidated work sheet. On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common stock, other paid-in capital in excess of par, and retained carnings of $50,000, $100,000, and $150,000, respectively. Net income and dividends for two years for Solar are as follows: 2015 2016 Net income .. 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 ycars, and straight-line depreciation is used. The remaining excess of cost over book value is attributed to goodwill. 1. Using this information and the information in the following trial balances on December 31,44Require 2016, prepare a value analysis and a determination and distribution of excess schedule: Paro Solar Company Inventory, December 31... 100,000 50,000 Investment in Solar Company Land ....400,000 50,000 50,000 350,000 320,000 Goodwill Other Intangibles. ...20,000 (continued) Paro Solar Bonds Payable Other Long-Term Liabilities Common Stock-Paro Company Other Paid n Capital in Excess of Par Paro Company (1 00,000 (200,000 100,000) (50,000) 100,000) (190,000) .(520,000) 450,000 300,000 260,000 Other Paid-ln Capital in Excess of Par-Solar Company. . . . . Net Sales Cost of Goods Sold (72,000) Dividends Declared-Solar Company. . 30,000 . . . . . .. . . . . . . . . . . 0 2. Complete a worksheet for consolidated financial statements for 2016. Include columns for eliminations and adjustments, consolidated income, NCI, controlling retained earnings, and consolidated balance sheet