Problem 3-6 (LO 2) Equity method, 80% interest, worksheet, statements. Sandin Company prepares the following balance sheet on January 1, 2015: Assets Liabilities and Equity Current assets Land... Buildings $ 50,000 75,000 350,000 Liabilities Common stock ($10 par). Paid-in capital in excess of par $140,000 100,000 120,000 Assets Liabilities and Equity Retained earnings (deficit).. (25,000) Accumulated depreciation- buildings Total assets.. (140,000) $ 335,000 Total liabilities and equity $335,000 On this date, Prescott Company purchases 8,000 shares of Sandin Company's outstanding stock for a total price of $270,000. Also on this date, the buildings are understated by $40,000 and have a 10-year remaining life. Any remaining discrepancy between the price paid and book value is attributed to goodwill . Since the purchase, Prescott Company has used the simple equity method to record the investment and its related income. Prescott Company and Sandin Company prepare the following separate trial balances on December 31, 2016: Prescott Sandin Current Assets Land Buildings Accumulated Depreciation Buildings Investment in Sandin Company. Liabilities Common Stock ($10 par) Paid-In Capital in Excess of Par Retained Earnings, January 1, 2016.. Sales 180,000 150,000 590,000 (265,000) 294,000 (175,000) (200,000) 115,000 75,000 350,000 (182,000) (133,000) (100,000) (120,000) 15,000 (120.000) (503,000) (360.000) Sales Cost of Goods Sold Expenses Subsidiary Income. Dividends Declared. Totals. (360,000) 179,000 120,000 (20,000) 10,000 (120,000) 50,000 45,000 5,000 0 0 1. Prepare a value analysis and a determination and distribution of excess schedule for the