Question: How is the net asset equal to $340,000?$ I got $440,00$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:

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 $10$ years, and straight$-$line depreciation is used. The remaining excess of cost over book value

is attributed to goodwill.

Using this information and the information in the following trial balances on December $31,$

$2016,$ prepare a value analysis and a determination and distribution of excess schedule:

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.