Problema P3-2 Simple Equity method adjustment, consolidated worksheet On January 1, 2021, Pares Co. purchases 80% of common stock of Soap Co. for $308,000($385,000X 80% ). Soap has common stock of $50,000, Paid in Capital in Excess of Par of $100,000 and Retained Earnings of $150,000. Net Income for 2021 is $60,000 and for 2022 is $90,000. Dividends paid for 2021 is $20,000 and for 2022 is $30,000. On January 1, 2021, the only undervalued tangible assets of Soap are inventory and the building. Inventory, for which FIFO is used, is worth $10,000 more than cost. The inventory is sold in 2021. The building, which is worth $25,000 more than book value, has remaining life of 10 years, and straight-line depreciation method is used. The remaining excess of cost over book value is attributable to goodwill. 1. Using the above information and the following Trial Balances on December 31, 2022, prepare a value analysis and a determination and distribution of excess schedule. 2. Complete the worksheet (provided in a separate document) for consolidated financial statements for 2022. Include columns for eliminations and adjustments, consolidated income, non-controlling interest (NCI), controlling retained earnings and consolidated balance sheet. Problem 3-2